Either an increase in demand with the supply curve held constant or a decrease in supply with the demand curve held constant will raise a market's equilibrium price.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2In a market without government interference, the price is free to move the equilibrium.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3Higher gasoline prices would likely raise the price of large, gas-guzzling automobiles.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4If the supply curve decreases while the demand curve remains unchanged, the equilibrium price would increase.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5If the demand curve increases while the supply curve remains unchanged, the equilibrium price would increase.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6Assume demand is held constant and supply increases. The result is a decrease in the equilibrium price and an increase in the equilibrium quantity of the item bought and sold.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 7Assuming supply is held constant, an increase in demand for a product will cause an increase in the equilibrium price and the amount bought and sold.
a. True
b. False
Indicate whether the statement is true or false
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