Please Help me with these questions.

1.After a hurricane in Florida knocked out the regional water supply for several days, the demand for bottled water increased sharply. In a market economy, how will this increase in demand affect the equilibrium price and quantity of bottled water?

a. Price will increase, and quantity will decrease.

b. Price will decrease, and quantity will decrease.

c. Price will decrease, and quantity will increase.

d. Price will increase, and quantity will increase.

2When there are positive externalities associated with the consumption of a good, we can expect the market:

a. Demand curve to lie above the social demand curve.

b. Demand curve to lie below the social demand curve.

c. Supply curve to lie above the social supply curve.

d. Supply curve to lie below the social supply curve.

e. Demand curve to lie below the social supply curve.

3. The government would use production taxes to remedy the problem of substantial:

a. Internal benefits of production.

b. External benefits of production.

c. External costs of production.

d. External benefits of consumption

e. External costs of consumption.

4.Compared to ideal economic efficiency, when the production of a good generates external costs, competitive markets will result in an output that is too:

a. Large and a price that is too high.

b. Large and a price that is too low.

c. Small and a price that is too high.

d. Small and a price that is too low.

5.Assume no price ceiling exists and a market is in equilibrium. Then a price ceiling is established which is below the market equilibrium. What would result?

a. Shortage.

b. Equilibrium.

c. Surplus.

d. Equity.

6.Minimum wage legislation:

a. Sets a price ceiling above the market-clearing price.

b. Has no impact if the minimum wage is above the market-clearing price.

c. Has the same impact in all labor markets.

d. Creates unemployment when the minimum wage is above the equilibrium wage.

e. Is opposed by organized labor.

7.The excess supply created when governments impose a price floor is:

a. Shrinking as the floor rises.

b. The difference between the old quantity supplied and new quantity demanded.

c. The difference between the new quantity supplied and the old quantity demanded.

d. The difference between the new quantity supplied and the new quantity demanded.

e. Actually efficient because prices are higher for suppliers.

8.Ceteris paribus, an increase in the supply of a good causes which of the following?

a. Lowers the equilibrium price, and reduces the quantity bought and sold.

b. Raises the equilibrium price, and raises the quantity bought and sold.

c. Raises the equilibrium price, and increases the quantity bought and sold.

d. Lowers the equilibrium price, and increases the quantity bought and sold.

e. Equilibrium price and equilibrium quantity change are indeterminate.

9. The minimum wage is a good example of a price floor.

a. True

b. False

10.Buyers always prefer lower prices to higher prices.

a. True

b. False