Economics

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1) If the cost of producing a product increases, which of the following will occur? 
______ A) 
The supply of the product will decrease. B) 
The demand for the product will decrease. C) 
The quantity supplied will increase. D) 
The quantity demanded will increase.

 

2)The price of gasoline was much higher in 2005 than it was in 2004 and yet roughly the same amount of gasoline was bought in both years.  What can explain this?   
______ A) 
The supply of gasoline stayed constant. B) 
The demand for gasoline increased from 2004 to 2005. C) 
The demand for gasoline does not follow the law of demand. D) 
None of these explain this.

 

3) Which of the following is not correct? 
______ A) 
Demand schedules are tables relating quantity demanded to possible prices. B) 
Demand curves slope downward and to the right on a price quantity diagram C) 
Both demand schedules and demand curves reveal the law of demand. D) 
By itself, a demand curve shows what the market price is. 

 

4) 
If market demand and market supply both decrease by 50 percent, what happens to equilibrium price and equilibrium quantity? 
______ A) 
Equilibrium price falls and equilibrium quantity increases. B) 
Equilibrium price rises and equilibrium quantity increases. C) 
Equilibrium price is constant and equilibrium quantity decreases. D) 
Equilibrium price is constant and equilibrium quantity increases.

 

 

 

I need them to be answered ASAP and I need you to tell me the reason for choosing each answer ( with illustrating please. I need them to be answered correctly please.

    • 11 years ago
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