Ifthedemandforaproductincreases,thenwewouldexpectequilibriumprice
A. to increase and equilibrium quantity to decrease.
B. to decrease and equilibrium quantity to increase.
C. and equilibrium quantity both to increase.
D. and equilibrium quantity both to decrease.
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Ifthesupplyofaproductdecreases,thenwewouldexpectequilibriumprice
A. to increase and equilibrium quantity to decrease.
B. to decrease and equilibrium quantity to increase.
C. and equilibrium quantity to both increase.
D. and equilibrium quantity to both decrease.
Whensupplyanddemandbothincrease,equilibrium
A. price will increase.
B. price will decrease.
C. quantity may increase, decrease, or remain unchanged.
D. price may increase, decrease, or remain unchanged.
Asurplusexistsinamarketif
A. there is an excess demand for the good.
B. quantity demanded exceeds quantity supplied.
C. the current price is above its equilibrium price.
D. All of the above are correct.
Supposerosesarecurrentlysellingfor$40perdozen,buttheequilibriumpriceofrosesis$30perdozen.Wewouldexpecta
A. shortage to exist and the market price of roses to increase.
B. shortage to exist and the market price of roses to decrease.
C. surplus to exist and the market price of roses to increase.
D. surplus to exist and the market price of roses to decrease.
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