Answer the following questions true (T) or false (F)
1. Market equilibrium occurs where the quantity supplied is equal to the quantity demanded.
2. If the demand for a product increases and the supply of the same product increases, the equilibrium price will increase.
3. As the number of firms in a market decreases, the supply curve will shift to the left and the equilibrium price will rise.
1. TRUE
2. FALSE
3. TRUE
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Mainstream economists believe that Keynesian economists overstate the effect of the multiplier effect. Which of the following statements would mainstream economists NOT consider to be accurate?
A) A fiscals stimulus does not provide a 'free lunch' but does 'crowd out' private consumption expenditure and investment. B) A fiscal stimulus is a vital tool to fight recession and depression due to the multiplier effect. C) Effects of a fiscal stimulus are small and short lived. D) A fiscal stimulus results in bigger government, lower potential GDP, and slower real GDP growth. E) Effects of a fiscal stimulus are incapable of working fast enough to make a difference.
According to the U.S. National Safety Council, a person has a better chance of being killed in which of the following situations?
A) in an aircraft accident B) from being electrocuted C) while riding a bicycle D) while walking