1. Describe the difference between demand and supply. 2. How does the law of demand and supply affect the market? 3. How does equilibrium occur in market? 4. What are the price controls of the government?
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- 21. How does the law of supply and demand affect the prices of goods and services?What happens to the equilibrium price and quantity of gasoline during a severe hurricane in the Gulf of Mexico? A. Price decrease, Quantity decrease B. Price decrease, Quantity increase C. Price increase, Quantity decrease D. Price increase, Quantity increase1. In a market system, prices are determined by Select one: a. supply and demand b. government bureaucrats c. corporate executives d. total market demand 2. The price elasticity of demand is 5.0 if a 10 percent increase in the price results in a ____ decrease in the quantity demanded. Select one: a. 50 percent b. 5 percent c. 10 percent d. 2 percent 3. A fall in the price of lemons from R10.50 to R9.50 per peck increases the quantity demanded from 19,200 to 20,800 pecks. The price elasticity of demand is____. Select one: a. 1.20. b. 8.00. c. 0.80. d. 1.25. 4. A shift of the supply curve of oil raises the price of oil from R9.50 a barrel to R10.50 a barrel and reduces the quantity demanded from 41 million to 39 million barrels a day. The price elasticity of demand for oil is Select one: a. 2.0. b. 0.5. c. R1 per 2 million barrels a day. d. 2 million barrels a day per rands. 5. The price elasticity of demand equals ____. Select one:…
- 1. Carefully explain what is happening in the following markets. Indicate the impact if any on demand, supply, price and quantity.Researchers find that drinking beer has positive health effects. What impact will this have on the price of beer and producer surplus? Select one: a. they both decrease b. the equilibrium market price increases, and producer surplus decreases c. they both increase d. the equilibrium market price decreases, and producer surplus increasesA drought reduces the supply of coffee and, at the same time, a new study reveals that coffee helps increase brain activity and make people smarter. What would happen to the price and quantity of coffee as a result? Select one: a. Price will increase, but quantity can increase, decrease or remain the same b. Price will decrease, but quantity can increase, decrease or remain the same c. Quantity will increase, but price can increase, decrease or remain the same d. Quantity will decrease, but price can increase, decrease or remain the same e. Price and quantity will both remain the same
- Question 30 The government in your country is considering three programs that affect the market for cigarettes. • Program 1: Media campaigns and labeling requirements aimed at making the public aware of the dangers of cigarette smoking. • Program 2: A price-support program for tobacco farmers. • Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases. Determine the impact of on the market for cigarettes if Program 3 is implemented. Impact on demand Choose. Impact on supply Choose. Impact on price Choose. Impact on quantity Choose.Select from the list in the second picture how it would affect: a. Impact on demand b. Impact on supply c.Impact on price d. Impact on quantity3. The U.S. government introduced a variety of price controls in the 1970s, including controls on gasoline prices. The result was long lines at the pumps for fuel. If the government had not instituted the price controls, what would have happened?
- When a market is at equilibrium, A B C D sellers are willing to sell less than consumers are willing to buy. sellers are willing to sell more than consumers are willing to buy. neither consumers nor producers are satisfied with the quantity traded. both producers and consumers are satisfied with the quantity traded.Is this market in equilibrium? How do you know? What is one idea you can think of to help solve this problem?what is the main problem in demand and supply
