6. When economists say the supply of a product has decreased, they mean that A a
ID: 1208661 • Letter: 6
Question
6. When economists say the supply of a product has decreased, they mean that A a smaller quantity will be produced at any price B. the price is too high for equilibrium C. a greater quantity will be produced at any price D. the price is too low for equilibrium 7. When the price of a product increases, total revenue earned from selling that product also increases. From this, we can conclude that demand for the product is A. elastic B. unit-clastic C. inelastic perfectly elastic According to the graph below, equilibrium price and quantity are 50 45 40 35 30 25 -. 25 20 10 600 700 unty 100200 300 400 A. S35, 200 B. $25, 200 $25, 400 S15, 600 9. Economists consider profit to be total revenue minus total explicit costs. B. total revenue minus total implicit costs. C. total revenue minus total variable costs. D. total total revenue minus total explicit costs minus total implicit costs.Explanation / Answer
6 A. a smaller quantity will be produced at any price.
If the supply of a product decreases then the quantity of production also gets down and produced minimum quantity at any price.
7c. inelastic
If an increase in price causes an increase in total revenue, then demand can be said to be inelastic, since the increase in price does not have a large impact on quantity demanded.
8.The equilibrium price is determined at the intersection of the demand (for a good) and the supply (of that good)
Here in the graph equilibrium price is $400 and quantity is 25 units
Hence the correct option is c.
9.Economic profit is the monetary costs and opportunity costs a firm pays and the revenue a firm receives. Economic profit = total revenue - (explicit costs + implicit costs).
Hence the correct option is d.
10.B. graph b.
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