5.)What happens if a government imposes price controls that require a selling pr
ID: 1213232 • Letter: 5
Question
5.)What happens if a government imposes price controls that require a selling price that is BELOW the equilibrium price?
A. A SHORTAGE results—a shortage then puts a pressure on prices to DROP
B. A SHORTAGE results—a shortage then puts a pressure on prices to RISE
C. A SURPLUS results—a surplus then puts a pressure on prices to DROP
D. A SURPLUS results—a surplus then puts a pressure on prices to RISE
6.)A “DECREASE IN DEMAND” is best described as:
A shift of the entire demand curve to the left—closer to the origin
A shift of the entire demand curve to the right—away from the origin
Movement ALONG the demand curve
7.)
A Decrease in QUANTITY DEMANDED is best described as:
A shift of the entire demand curve to the left—closer to the origin
A shift of the entire demand curve to the right—away from the origin
Movement ALONG the demand curve
8.)
Hugo Boss is a designer label (known throughout the world mostly for quality men's clothing).
All other things being equal, what will be the effect on the EQUILIBRIUM PRICE of Hugo Boss clothing if it becomes a more fashionable and popular brand of clothing (because a very popular actor is seen wearing this brand on a regular basis)?
Equilibrium price would decrease
Equilibrium price would increase
Equilibrium price would remain the same
9.)
All other things being equal, what will be the effect on the EQUILIBRIUM QUANTITY of Hugo Boss clothing if it becomes a more fashionable and popular brand of clothing (because a very popular actor is seen wearing this brand on a regular basis)?
Equilibrium quantity would decrease
Equilibrium quantity would increase
Equilibrium quantity would remain the same
What concept best describes the actual quantity sold of a particular product in a competitive market?
The origin
The SUPPLY curve
The DEMAND curve
The equilibrium quantity
A.A shift of the entire demand curve to the left—closer to the origin
B.A shift of the entire demand curve to the right—away from the origin
C.Movement ALONG the demand curve
Explanation / Answer
5.)What happens if a government imposes price controls that require a selling price that is BELOW the equilibrium price?
B. A SHORTAGE results—a shortage then puts a pressure on prices to RISE
A price control below the equillibrium price would reduce the quantity supplied at each price unit and create a shortage.This would put an upward pressure on prices.
6.)A “DECREASE IN DEMAND” is best described as: A.
A shift of the entire demand curve to the left—closer to the origin
A decrease in demand occurs due to changes in the factors other than price change.
7.)
A Decrease in QUANTITY DEMANDED is best described as:
C.
Movement ALONG the demand curve
A decrease in quantity demanded means changes in the price level which occur along the demand curve.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.