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

1. When the law of supply holds, an increase in the price of a product will cause producers to increase the quantity they wish to sell.
2. A rise in supply is illustrated by a rightward shift in the supply curve.
3. The supply curve for a commodity will shift downward when an excise tax is imposed.
4. An increase in the price of wheat will cause a rise in the supply of wheat.
5. When the actual market price is below its equilibrium level, suppliers are satisfied but demanders are not.


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

Economics

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