N2

$ Price $ Price P Pa Gunntity Graph (7) Quantity Graph (2) $ Price $ Price Quantity Quantity Graph (3) Graph [4) 20. In which graph above would the indicated shifts cause equilibrium quantity to definitely fall, but the effect on price is indeterminate? A) Graph 1 B) Graph 2 C) Graph 3 D) Graph 4 21. The law of supply means: A) A firm will provide a smaller quantity of a good when its price rises B) A firm will provide a larger quantity of a good when its price rises () New technologies will allow a firm to provide a larger quantity of a pood D) Natural disasters force a firm to provide a smaller quantity of a good Module 4 22. If the price of music downloads falls from $3.50 to $2.50, and quantity demanded rises from 10,000 to 12,000 downloads, what is the arc (midpoint) price elasticity? A) -0.55 B) -0.91 CJ-1.64 D) -2.00