Answer the following statement(s) true (T) or false (F)
1. When supply and demand move at the same time, the change of one variable (price or quantity) can be predicted, but the direction of the effect on the other variable cannot be predicted with any certainty.
2. If the decrease in demand is greater than the increase in supply, the equilibrium price and equilibrium quantity will fall.
3. An increase in supply and an increase in demand causes a decrease in equilibrium quantity.
4. For HD televisions, the effect of increased supply pushing prices down outweighed the effect of increased demand pushing prices up.
1. True
2. True
3. False
4. True
You might also like to view...
The currency created by the European Monetary Union, for which notes and coins became available in 2002, is the
A) ECU. B) euro. C) EMU. D) pound.
In an output market
A. consumers purchase products. B. land, labor, and capital may be exchanged. C. firms purchase resources. D. households earn income.