State whether the following statements are TRUE or FALSE and explain your answer.Surplus occurs when the quantity demanded is greater than the quantity supplied atcertain price.(a)(b)Increased demand with a constant price resulted in increased supply and quantity.In long term price elasticity of supplied is more elastic because more responsive tochanges in price since sellers can adjusts their production.(c)(d)Income elasticity of demand (E,) is a measure of the degree of responsiveness ofchanges in the quantity demanded of goods to a change in its price.(e)If the value of income elasticity of demand for goods is negative(E, <0), thequantity demanded will decrease when income increases. Therefore, the goods is anessential goods.Microeconomics is the branch of economics that analyses the behaviour of hownational economies work.(f)Economics is the study of how evenly goods and services are distributed withinsociety(g)(h)Inflationary gap is defined as a situation when real aggregated supply is less that theaggregate supply for employment.(i)When the supply is elastic, the supply curve has a steep slope.Recovery phase of the business cycle is when real GDP reaches its minimum afterrising.(i)

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State whether the following statements are TRUE or FALSE and explain your answer. Surplus occurs when the quantity demanded is greater than the quantity supplied at certain price. (a) (b) Increased demand with a constant price resulted in increased supply and quantity. In long term price elasticity of supplied is more elastic because more responsive to changes in price since sellers can adjusts their production. (c)

State whether the following statements are TRUE or FALSE and explain your answer. Surplus occurs when the quantity demanded is greater than the quantity supplied at certain price. (a) (b) Increased demand with a constant price resulted in increased supply and quantity. In long term price elasticity of supplied is more elastic because more responsive to changes in price since sellers can adjusts their production. (c)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 10E

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