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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. |
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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 |
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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. |
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