Multiple Choice
Exhibit 4-1 Supply and demand data
|
| Quantity | Quantity |
| $1.00 | 500 | 50 |
| 1.50 | 450 | 150 |
| 2.00 | 400 | 250 |
| 2.50 | 300 | 300 |
| 3.00 | 150 | 350 |
In Exhibit 4-1, suppose that a reduction in the price of an important input used to produce the good causes an increase in quantity supplied of 150 units at every price level. Assuming that demand does not change, the new equilibrium price will be:
A) $1.00.
B) $1.50.
C) $2.00.
D) $2.50.
Correct Answer:
Verified
Correct Answer:
Verified
Q10: External benefits cause the market to:<br>A) underallocate
Q11: Cindy discovers that when she goes to
Q12: Exhibit 4-8 Demand and supply curves<br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX8793/.jpg"
Q13: When airplanes take off and land at
Q14: Consider the market for chicken. Assuming that
Q16: Consider the market for grapes. An increase
Q17: When there are positive externalities associated with
Q18: Ceteris paribus , if consumer tastes change
Q19: Price ceilings set below the equilibrium create:<br>A)
Q20: If the equilibrium price of aspirin is