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Question: 1 if the price of a good is currently below...

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1. If the price of a good is currently below its equilibrium price, there is a surplus of the good on the market and we can expect the price of the good to increase. T/F

2. The four variables below affect the amount of a good people choose to buy. Changes in all of these variables cause the demand curve to shift except

a.) a change in consumer income

b.) changes in the price of related goods

c.) a change in consumer preference

d.) a change in the price of a good

3. The law of demand states that, all else the same,

a.) an increase in the price of a good cause a decrease in the quantity supplied of the good

b.) an increase in the price of a good causes an increase in the quantity demanded of the good

c.) an increase in the price of a good causes an increase in the quantity supplied of a good

d.) an increase in the price of a good causes decrease in the quantity demanded of the good

4. Which of the following does not directly influence the supply of a good?

a.) technology

b.) consumer income

c.) the cost of production

d.) the number of suppliers

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