51. An increase in the price of a good will a. increase supply. b. decrease supp
ID: 1130537 • Letter: 5
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51. An increase in the price of a good will a. increase supply. b. decrease supply. c. increase quantity supplied. d. decrease quantity supplied. Figure4.20 100200 300 400 500 600 700 900 900 52. Refer to Figure 4-20. In this market, equilibrium price and quantity, respectively, are a. $15 and 400 units. b. $20 and 600 units. c. $25 and 500 units d. $25 and 800 units. 53. Refer to Figure 4-20. If the price is $25, then there would be an excess a. supply of 100 units, and price would fall. b. supply of 300 units, and price would fall. c. demand of 100 units, and price would fall. d. demand of 300 units, and price would fall. 54. Refer to Figure 4-20. If the price is $25, then there would be an excess a. supply of 100 units, and price would fall. b. supply of 300 units, and price would fall. c. demand of 100 units, and price would fall. d. demand of 300 units, and price would fall. 55. The price elasticity of demand measures how much a. quantity demanded responds to a change in price b. quantity demanded responds to a change in income. c. price responds to a change in demand. d. demand responds to a change in supply.Explanation / Answer
51. An increase in the price of a good will increase quantity supplied .
Change in quantity supply refers to a situation at which quantity supplied change due to change in price other factors remain constant.
Change in quantity supply has 2 aspects
Extension of supply will bring rise in price and contraction of supply will bring fall in price. Other factors remain constant in both the cases.
52. $20 and 600unit are equilibrium price and quantity as at this point both demand and supply curve interest eact other.
53. If the price is $25 , then there would be a excess supply of 300 units and price would fall.
54. If the price is $25 , then there would be a excess supply of 300 units and price would fall.
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