Answer the following statement(s) true (T) or false (F)
1. When supply and demand move at the same time, the change of one variable (price or quantity) can be predicted, but the direction of the effect on the other variable cannot be predicted with any certainty.
2. If the decrease in demand is greater than the increase in supply, the equilibrium price and equilibrium quantity will fall.
3. An increase in supply and an increase in demand causes a decrease in equilibrium quantity.
4. For HD televisions, the effect of increased supply pushing prices down outweighed the effect of increased demand pushing prices up.
1. True
2. True
3. False
4. True
You might also like to view...
Briefly explain why a jacket is a private good.
What will be an ideal response?
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.
The price of $10 in the graph above represents
A. a price floor.
B. a price ceiling.
C. either a price floor or a price ceiling.
D. neither a price floor nor a price ceiling.
Which of the following are common barriers to entry?
A) economies of scale B) absolute unit-cost advantages C) capital access and costs D) all of the above