17. Suppose that the number of licensed distillers of Kreta Raki declines and that simultaneously the US government implements a $20 price ceiling on market prices, but demand remains unchanged. What is the new quantity supplied, the new quantity demanded, the new price, and is this the new equilibrium? (a) QS: 500: QD: 2,500; P: $20; Yes. This is the new equilibrium. (b) QS: 1,500; QD: 1,500; P: $60; Yes. This is the new equilibrium. (c) QS: 500; QD: 2,500; P: $20; No. A new equilibrium cannot be reached. (d) QS: 5; QD: 25; P: $20; No. A new equilibrium cannot be reached.13. Which of the following statements is not true about the demand curve? (a) Movements along a demand curve reflect the changes in consumer's tastes. (b) The demand curve shows the maximum price consumers will pay for various quantities of a product. (c) Movements along a demand curve reflect consumer's response to price changes. (d) The demand curve shows the quantities that consumers will purchase at various prices. 14. Consider two separate and unidentified goods, A and B. If the price of A goes down, and the demand curve for B shifts to the right, then (a) The demand curve for B will not shift, but the quantity demanded of B will increase. (b) The two goods are complements. (c) The two goods are substitutes. (d) The goods are inferior goods. (e) The demand curve for B shifts to the left, not the right