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Mic8: Changes in supply and demand

Last updated about 6 years ago

5 questions

1

1

1

1

1

Question 1

1.

Which graph above is depicting a decrease in demand?

Panel A

Panel D

Panel B

Panel C

Question 2

2.

Which graph above is depicting an increase in supply?

Panel C

Panel D

Panel B

Panel A

Question 3

3.

When supply decreases what happens to equilibrium price and quantity?

Equilibrium price and quantity both decrease

Equilibrium price decreases and quantity increases

Equilibrium price and quantity both increase

Equilibrium price increases and quantity decreases

Question 4

4.

When demand increases what happens to equilibirum price and quantity?

Equilibrium price increases and quantity decreases

Equilibrium price and quantity both decrease

Equilibrium price and quantity both increase

Equilibrium price decreases and quantity increases

Question 5

5.

Using graph 8 above when supply and demand both increase, what happens to equilibrium price and quantity?

Equilibrium price is indeterminant and quantity increases

Equilibirum price and quantity are both indeterminant

Equilibrium price increases and quantity is indeterminant

Equilibirum price decreases and quantity increases