1- A movement along a demand curve from one price-quantity combination to anothe
ID: 1133378 • Letter: 1
Question
1- A movement along a demand curve from one price-quantity combination to another is called
a change in quantity supplied.
a shift in demand.
a change in supply.
a change in quantity demanded.
a change in demand.
2- Consider a market with intersecting supply and demand curves and with demand and supply having their typical slopes --a positively sloped supply curve and a negatively sloped demand curve. If the supply curve were to shift to the left, and the demand curve were to shift to the left as well, in the new equilibrium: A-quantity would be lower, but the direction of the price change cannot be determined. B-price would be higher and quantity would be lower. C-both the price and quantity would be higher. D-price would be lower but the direction of the quantity change cannot be determined E- both price and quantity would be lower. Suppose supply increase substantially,
Then A- equilibrium price will fall and equilibrium quantity will rise B- equilibrium price will fall and equilibrium quantity will fall C- demand will also increase. D- equilibrium price will rise and equilibrium quantity will rise E- equilibrium price will rise and equilibrium quantity will fall Suppose supply increase substantially, Then A- equilibrium price will fall and equilibrium quantity will rise B- equilibrium price will fall and equilibrium quantity will fall C- demand will also increase. D- equilibrium price will rise and equilibrium quantity will rise E- equilibrium price will rise and equilibrium quantity will fall Suppose supply increase substantially, Then.
3 -Suppose supply increase substantially, Then
A
equilibrium price will fall and equilibrium quantity will rise
B
equilibrium price will fall and equilibrium quantity will fall
C demand will also increase.
D equilibrium price will rise and equilibrium quantity will rise
E equilibrium price will rise and equilibrium quantity will fall
A
equilibrium price will fall and equilibrium quantity will rise
B
equilibrium price will fall and equilibrium quantity will fall
Explanation / Answer
Answer
1)
The correct answer is (d) A Change in Quantity Demanded
A movement along Demand Curve occurs when its own price change and this change in quantity that occurs because of change in its own price is known as Change in Quantity Demand.
Hence The correct answer is (d) A Change in Quantity Demanded.
2)
The correct answer is A) quantity would be lower, but the direction of the price change cannot be determined.
If Both Demand Curve and Supply Curve Shifts to the Left Then Quantity will definately fall because as both Demand and Supply decreases then Equilibrium Quantity will definately decrease. Now If Both Supply and Demand Decreases equally then Price will remain Unchanged. If Decrease in Supply is Greater than Decrease in Demand then Price will increase and If decrease in Supply is lesser than Decrease in Demand then Price will fall.
Hence the correct answer is A) quantity would be lower, but the direction of the price change cannot be determined.
3)
The correct answer is (E) equilibrium price will rise and equilibrium quantity will fall.
If Supply Decreases then at the old equilibrium Price Demand will be greater than Supply hence This excess pressure on supply will result in increase in Price and as Price increases Quantity Demanded will decrease. Hence At the End Equilibrium Price will rise and Equilibrium Quantity will fall.
Hence The correct answer is (E) equilibrium price will rise and equilibrium quantity will fall.
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