Question 8 Not yet answered Points out of 1 F Flag question (This question refer
ID: 1155516 • Letter: Q
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Question 8 Not yet answered Points out of 1 F Flag question (This question refers to the MRU video The Supply Curve Shifts':) Anything that decreases costspply, shifting the supply curve Select one: O O a. increases supply, down and to the right b. decreases supply; down and to the right c. increases supply; up and to the left d. decreases supply, up and to the left O n9 Not yet answered Points out of P Flag question Suppose an ice storm knocks down power lines, and it is announced on the news that the local area would be without power for one week. We would expect to see: Select one: O a. an increase in the price and quantity of power generators b. a decrease in the price and quantity of power generators. O c.an increase in the price of generators and a decrease in their sales d, a decrease in the price of generators and an increase in their sales. O OExplanation / Answer
Answer : 8) a is the correct option.
Because when cost decrease then producers produce more which increase the market supply and as a result the supply curve shift to down and to the rightward of existing market supply curve.
9) a is the correct option.
Because when ice storm cuts the power for one week then demand for generator power increase in local area. As a result the price of generator power increase and as price increases, then the quantity level of generator power also increase because of positive relationship between price and quantity supply.
10) d is the correct option.
Other things reamin constant, if demand for a product increase then a new equilibrium condition occur and at this new equilibrium point the equilibrium quantity level increase because when demand increase, the price also increase and as at new equilibrium point the price level increases, the quantity supply also increase because of positive relationship between price and quantity supply.
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