Question 2 Which of the following predictions is not made by the supply and demand model?' a) If there is excess demand, the price will rise. b) If there is excess supply, the price will fall. c) If there is no excess demand or excess supply, the market will be in equilibrium. d) A market which is out of equilibrium will always move rapidly to the equilibrium, Question 3 Suppose there is excess supply in a market and the price decreases. Which of the following combinations of events will occur? a) There will be a fall in quantity supplied and a rise in quantity demanded. • b) There will be a fall in quantity supplied and a rise in demand. c) There will be a fall in supply and a rise in quantity demanded. d) There will be a fall in supply and a rise in demand.

Question 2 Which of the following predictions is not made by the supply and demand model?' a) If there is excess demand, the price will rise. b) If there is excess supply, the price will fall. c) If there is no excess demand or excess supply, the market will be in equilibrium. d) A market which is out of equilibrium will always move rapidly to the equilibrium, Question 3 Suppose there is excess supply in a market and the price decreases. Which of the following combinations of events will occur? a) There will be a fall in quantity supplied and a rise in quantity demanded. • b) There will be a fall in quantity supplied and a rise in demand. c) There will be a fall in supply and a rise in quantity demanded. d) There will be a fall in supply and a rise in demand.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 6.13P

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