 |
| 1 | |
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::::/sites/dl/free/1259030687/947806/figure2_15.gif','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (9.0K)</a>]]>
Refer to Figure 2.15 above to answer this question. Assume that there is a shortage of 60 units. What does this mean? |
| | A) | Purchasers would be willing to pay an additional $600 for the quantity they are now purchasing. |
| | B) | The price must be above equilibrium. |
| | C) | The price must be $1200. |
| | D) | The price must be $600. |
| | E) | None of the above is correct. |
|
|
|
| 2 | |
<![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::::/sites/dl/free/1259030687/947806/figure2_15.gif','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (9.0K)</a>]]>
Refer to Figure 2.15 above to answer this question. Suppose that initially the market was in equilibrium and that demand increased by 60. What will be the new equilibrium as a result? |
| | A) | A price of $1000 and quantity traded of 120 |
| | B) | A price of $1000 and quantity traded of 160 |
| | C) | A price of $1200 and quantity traded of 160 |
| | D) | A price of $1400 and quantity traded of 160 |
| | E) | A price of $1400 and quantity traded of 240 |
|
|
|
| 3 | |
How will the demand and supply of a product be affected if both producers and consumers expect the price of a product to increase? |
| | A) | It will cause an increase in demand but a decrease in supply. |
| | B) | It will cause an increase in both demand and supply. |
| | C) | It will cause a decrease in both demand and supply. |
| | D) | It will cause an increase in supply but will have no effect on demand. |
| | E) | It will cause an increase in supply but a decrease in demand. |
|
|
.