24. The demand curve describes the relationship between the price of a good and the quantity demanded. Focusing on prices means: a. Economists believe that only the price of a good affects its quantity demanded. b. price is the only factor that inuences the quantity demanded of a good. c. economists assume that other factors that can inuence quantity are constant. which allows them to isolate the eect of price. d. we are not interested in the predictive capacity of the model. e. economists err in ignoring other factors that can inuence the quantity demanded of the good Answer: [ ] Ln.) PI The shortterm supply curve of a perfectly competitive rm is: horizontal. at b. most likely decreasing. c_ determined by factors external to the company. d. the portion of its marginal cost curve above average variable cost. e. the nth part of the supply curve of the industry comprising 11 firms Answer: [ ] 22. There is excess supply when: the current price is lower than the equilibrium price. the price is such that the quantities demanded and supplied are equal. there is no more rarity. new companies are entering the market. ETD-PETE\" the current price is higher than the equilibrium price. Answer: [ ] 23. According to the figures in Table 1, if the market price of a ton of cotton is $1,000, the producer surplus in this market will be: Table 1: Cost of production of a ton of cotton Marc C$1,500 C'ecile C$1,200 Dominique C$1,000 Jacques C$750 Antoine C$500 a. C$500 C$ b. 700 C$ c. 750 C$ d. 2250 C$ e. 3700 Answer: [ ]