Answer the following statement(s) true (T) or false (F)

1. Market demand for a private good is found by vertically summing individual demands.
2. The supply curve is positively sloped because marginal cost (MC) rises with output (Q).
3. If QS = –10 + ½ P, the slope of supply, when conventionally graphed, is +½ .
4. Equilibrium price is the price level at which QD equals QS.
5. If the price level is such that quantity supplied exceeds quantity demanded, there is excess demand, or a shortage in the market.


1. False
2. True
3. False
4. True
5. False

Economics

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