Surpluses and shortages will not occur as long as price can move freely and act as a “rationing mechanism”

Q: If both a supply curve and a demand curve shift left, the only definite conclusion is a. Price…

A: In a market, when there is a simultaneous change in demand and supply, there might be an ambiguous…

Q: If less rainfall limited the supply of indian onion production , how will it changes the equilibrium…

A: Equilibrium is achieved in the market at the point of intersection of the market demand and market…

Q: In the market for ketchup, which of the following would cause an increase in supply? Multiple Choice…

A: A shift in supply curve occurs when the quantity supplied of the good increases or decreases at the…

Q: Market research has revealed the following information about the market for washing machines: The…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Using supply and demand curves, demonstrate the likely effect on the equilibrium price and quantity…

A: Consumption of normal goods is positively associated with income, an increase in income increase the…

Q: The quantity demanded of walnuts is greater than the quantity supplied.

A: Answer for 34th Question The correct option is (d) The quantity demand of  walnuts is greater than…

Q: A decrease in supply and a decrease in demand will  increase price and affect the equilibrium…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: If demand increases and supply simultaneously increases, equilibrium price will rise. True or False

A: A change in demand is due to a shift in a consumer's desire to purchase a good or service. Change in…

Q: In 1992,  LAPD policemen were acquitted of beating Rodney King. Rioting, looting, and civil…

A: The demand for a good is said to occur due to the desires of people to consume various goods or…

Q: Hebrews, the Greeks, and the Scholastics with regard to what constitutes a “just price.”

A: Just price is defined as a price that is set by a standard or is structured under some principles or…

Q: Which of the following is NOT a common criticism of rationing products? a. Rationing costs money and…

A: Price ceiling is a situation where government sets a maximum price which can be charged for a…

Q: If the price of hamburger decreases from $3 to $2, then the weekly market quantity supplied will

A: Quantity supplied is the total quantity of products that producers manufacture to sell in the market…

Q: Which of the following statements is (are) correct? (x) If the supply curve is upward sloping and a…

A: As we know market is in equilibrium where demand and supply curve intersect at certain oint and…

Q: Which of the following best describes a market shortage (excess demand)? Group of answer choices A…

A: A market shortage occurs when at a given price the quantity demanded is greater than the quantity…

Q: A price ceiling will result in a shortage only if the ceiling price is _______________ the…

A: Price controls are those government restrictions that are enforced to regulate the prices of goods…

Q: A decrease in the current price of a good would increase the demand for the good. increase the…

A: Demand for a good refers to consumer's desire to purchase that good and their willingness to pay for…

Q: Suppose the market shown in the graph below is initially in equilibrium with price at P1. Then, the…

A: Hi! thanks for the question but as per the guidelines, we can answer only one question at one time.…

Q: . Why are shortages or surpluses more likely with preset prices, such as those on tickets, than…

A: The preset price refers to a predetermined price that is set by a business before the actual…

Q: If supply increases, this means suppliers are willing and able to offer less of the good for sale at…

A: There is positive relationship between supply and price of the product. As the price increases the…

Q: Why would a shift in supply or demand happen as a result in a market equilibrium with higher prices…

A: A market is a place where the buyers and the sellers interacts with each other and the exchange of…

Q: An increase in supply and demand will lead to an increase in the equilibrium price and an…

A: The markets in every economy acts as a meeting place, or an intermediator for the buyers, and…

Q: Which expression refers to the inverse (negative) relationship between price and quantity demanded…

A: There is the inverse relation the price and quantity demanded. As the price increases, the quantity…

Q: The quantity demanded of a good or service is the list of all quantities at different prices, as…

A: Quantity demanded is amount of different quantity demanded at different prices. Any investment…

Q: For a particular good, a 10 percent increase in price causes a 15 percent decrease in quantity…

A: The elasticity of demand is the degree of responsiveness from the part of the consumer towards the…

Q: Identify what happens to equilibrium price and quantity in each of the following cases: a. Decrease…

A: The market equilibrium is established at the price level where the quantity supplied of a good or…

Q: The price at which quantity demanded and quantity supplied of a good is equal is known as maximum…

A: In a free market the forces of demand and supply are set free to decide the market equilibrium and…

Q: Answer the following questions The amount by which the quantity supplied of a product exceeds the…

A: In a market, various economic terms are used to define a specfiic market situation, such as…

Q: X is an inferior good. If there is an increase in incomes, then (quantity supplied,quantity…

A: Because X is an inferior good,if there is an increase in incomes then quantity demanded for good X…

Q: Which of the following statements is false?  a. As more buyers enter the market, the market demand…

A: Demand: It shows an inverse relationship between the price of the commodity and the demand for that…

Q: Which of the following best describes the sequences of events that lead to a price increase and…

A: The logic of the model of demand and supply is simple. The demand curve shows the quantities of a…

Q: Fill in the blanks to make the following statements correct. a. Ceteris paribus, the price of a…

A: Ceteris paribus is a term used in economics to state that all the other variables are kept constant…

Q: When demand increases, there is a _____ at the old equilibrium price, which puts _____ pressure on…

A: The curve that depicts various quantities of goods being demanded by consumers at various levels of…

Q: A decrease in demand will cause a decrease in the equilibrium quantity and the equilibrium price.…

A: The demand is indirectly related to the price level in the economy. When all other factors remain…

Q: How will a simultaneous increase in the price of a substitute good and an improvement in production…

A: A market defines a place where households and organizations interact according to their interest and…

Q: If the demand curve moves to the right as the supply curve also moves to the right( at the same…

A: Equilibrium is occurring at the point where the demand curve intersects with supply curve.

Q: An increase in technology with a simultaneous decrease in the number of buyers will cause the…

A: In an economy, changes in the price and quantity level depend upon various demand-side as well as…

Q: What would be a good synonym for “equilibrium" in the term “equilibrium price"? Explain your choice.

A: The sum of money at which a product may be exchanged in a marketplace is referred to as market…

Q: Which of the following will definitely occur when there is an increase in demand and decrease in…

A: The equilibrium in the economy is determined at the intersection of the demand curve and the supply…

Q: If price of a Complement (commodity y) falls, what happens to demand of commodity x

A: The goods or the commodities are the products that satisfy human needs and provides utility to the…

Q: A change in demand means there has been a shift in the demand curve, and a change in quantity…

A: In the free market, the equilibrium price and quantity demanded is determined by the forces of…

Q: equilibrium price, and then the demand curve for X shifts rightward. What is the likely outcome of…

A: A surplus exists in the market when the quantity supplied exceeds the quantity demanded. A shortage…

Q: Consider the market for bus travel, where equilibrium price and quantity is determined by demand and…

A: The market for inferior goods decreases as income rises . A stimulus is likely to lower public…

Q: If the price of a product is below the equilibrium price, the result will be A. A shortage of the…

A: Equilibrium is a state in which economic forces like supply and demand are balanced and the…

Q: More than 20 states have laws outlawing price gouging during a state of emergency, which might be…

A: During a state of emergency, it is usually important that goods, especially basic necessities, are…

Q: Shortage conditions (shortages) will cause suppliers / producers to increase prices in order to gain…

A: Shortage occurs when quantity demanded exceeds quantity supplied. As a result an upward pressure is…