Refer to the above figure. Suppose that the supply curve shifts from SA to SB while the demand curve remains at DA. Which of the following is TRUE?
A) Only quantity supplied has increased.
B) Only quantity demanded has decreased.
C) Supply has increased.
D) Supply has decreased.
Ques. 2The impact of an increase in the gasoline tax on SUV sales is
A) a macroeconomics topic because it deals with taxes.
B) a microeconomics topic because it deals with one industry.
C) not an economic issue, but rather a political issue.
D) insignificant.
Ques. 3The price of a new textbook is 120 in one year and is 150 two years later, while the price of a used copy of the text increased from 40 to 60. The relative price of a new textbook
A) increased from 3 to 4.5.
B) decreased from 0.8 to 0.67.
C) decreased from 3 to 2.5.
D) remained constant.
Ques. 4Refer to the above figure. Suppose that the supply curve shifts from SA to SB while the demand curve shifts from DA to DB. Which of the following is TRUE about the results of the shifts in the supply and demand curves?
A) The equilibrium price increases while the equilibrium quantity remains unchanged.
B) Both the equilibrium price and equilibrium quantity increase.
C) The equilibrium price remains unchanged while the equilibrium quantity increases.
D) Both the equilibrium price and equilibrium quantity remain unchanged.
Ques. 5Education increases the stock of which factor of production?
A) physical capital
B) human capital
C) land
D) entrepreneurship
Ques. 6Refer to the above figure. Suppose the demand curve shifts from DA to DB, while the supply curve remains at SA. Which of the following statements is FALSE?
A) There has been an increase in demand.
B) Supply has increased.
C) More consumers in the market might have caused the demand curve to shift.
D) The new equilibrium price is P2, and the new equilibrium quantity is F.
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