Answer the following statements true (T) or false (F)
1. The quantity supplied is inversely related to price.
2. If demand and supply increase by the same amount, equilibrium price will rise.
3. If supply increases more than demand, equilibrium price will fall.
4. A change in demand occurs whenever consumers will purchase more because of a decrease in price.
5. An increase in demand tends to increase both the equilibrium price and the amount of a commodity exchanged.
1. FALSE
2. FALSE
3. TRUE
4. FALSE
5. TRUE
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Refer to the scenario above. What is Alice's optimal bidding price?
A) $25,000 B) $30,000 C) $24,000 D) $36,000
Suppose a market is in equilibrium. If a price floor is set in this market below the equilibrium price, it is likely that:
A) quantity demanded will increase. B) a surplus will arise. C) a shortage will arise. D) the quantity sold will rise. E) the market will remain in equilibrium.