Price $60 $50 $40 $30 $20 $10 100 200 Quantity Supply Curve Demand Curve 22) In the above figure, what are the equilibrium price and quantity? A) $30 and 100 units B) $50 and 100 units C) $40 and 200 units D) $10 and 200 units 23) In the above figure, what would result if the price was $40? B) a shortage A) equilibrium C) a surplus D) excess demand

22) In the above figure, what are the equilibrium price and quantity? A) $30 and 100 units B) $50 and 100 units C) $40 and 200 units D) $10 and 200 units 23) In the above figure, what would result if the price was $40 ? A) equilibrium B) a shortage a surplus D) excess demand 25) If the price of a product increases 25) A) there is an increase in quantity supplied and a decrease in demand. B) there is an increase in supply and a decrease in quantity demanded. C) there is an increase in quantity supplied and a decrease in quantity demanded. D) there is an increase in supply and a decrease in demand. 26) The market system is also called the price system because A) rising prices are the signal to producers to offer more of a particular good. B) inflation is a significant problem. C) people pay money in markets. D) everything has a price tag. 27) Transaction costs are 27) A) production costs. B) costs associated with exchange. C) taxes on production. D) regulations on production. 28) A newspaper headline asserts: "Rising Demand Pushes Up Housing 28) Prices." This headline A) incorrectly implies that the demand for housing can change, whereas in fact only the quantity of housing demanded can change. B) correctly implies that an increase in demand will increase the market clearing price. C) incorrectly implies that more housing will be demanded at higher prices. D) incorrectly implies that the price of housing will rise when demand increases