2 points Save A With a downsloping demand curve and an upsloping supply curve fo

Question

2 points Save A With a downsloping demand curve and an upsloping supply curve for a product, a decrease in resource prices will increase supply and increase equilibrium price and quantity decrease equilibrium price and quantity decrease equilibrium price and increase equilibrium quantity increase equilibrium price and decrease equilibrium quantity O QUESTION 6 2 points Save A When an economist says that the demand for a product has increased, this means that: consumers are now willing to purchase more of this product at each o the product has become particularly scarce for some reason. O product price has fallen and as a consequence consumers are buying a larger quantity of the product. possible price the demand curve has shifted to the left. QUESTION 7 2 points Save A Price ceilings and price floors: O cause surpluses and shortages respectively. make the rationing function of free markets more efficient. interfere with the rationing function of market prices. O shift demand and supply curves and therefore have no effect on the rationing function of prices.

Explanation / Answer

Answer.)

Q5.) decrease equilibrium price and increase equilibrium quantity

decrease in resource prices shift supply curve rightward that results in surplus at current price level . This leads to decrease in price to achieve new equilibrium price at lower level and new equilibrium quantity at higher level.

Q6.) consumers are now willing to purchase more of this product at each possible price.

Q7.) interfere with rationing function of market pice.

price floor and pice ceilings disturb market forces to achieve competitve market equilibrium.

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