Question 1 Refer to the diagram below. At price P3, Not yet answered Marked out of 1.00 Price P Flag question Pa -.4.. 0 Quantity Select one: O a. this market is in equilibrium O b. there is a surplus in the amount of Q5 - Q1. O c. equilibrium quantity is Q3. O d. there is a shortage in the amount of Q5 - Q1 Question 2 Which one of the following correctly describes how price adjustment eliminates a surplus? Not yet answered Select one: Marked out of 1.00 O a. As the price falls, the quantity demanded decreases and the quantity supplied increases. P Flag question O b. As the price falls, the quantity demanded increases and the quantity supplied decreases O C. As the price rises, the quantity demanded increases and the quantity supplied decreases. O d. As the price rises, the quantity demanded decreases and the quantity supplied increases.Question 3 A shortage will exist if Not yet answered Marked out of 1.00 Select one: Flag question a. the price is below the equilibrium price. O b. the price is above the equilibrium price. O c. there are not enough producers. O d. there are not enough consumers. Question 4 Which of the following will increase both equilibrium price and quantity? Not yet answered Select one: Marked out of 1.00 O a. An increase in input prices P Flag question O b. An improvement in technology- O c. Consumers expect the price of the good will drop soon. O d. The good is a normal good and consumer income increases. Question 5 If A and B are substitutes and the price of A falls, we will observe Not yet answered Marked out of 1.00 Select one: 17 Flag question O a. a decrease in the equilibrium price and the equilibrium quantity of B. O b. an increase in the equilibrium price but a decrease in the equilibrium quantity of B. O c. a decrease in equilibrium price but an increase in the equilibrium quantity of B. O d. an increase in the equilibrium price and the equilibrium quantity of B. Question 6 In each of the following cases, explain how the given situation will i) affect the demand or supply and therefore ii) Not yet answered change the equilibrium price and quantity of the "underlined" product. Also draw a fully label graph. Marked out of 1.00 i) Bread prices decrease which affects the demand for strawberry jam. P Flag question ii) The resources which are used to produce Good A increase in price. iii) Many more pizzerias open up in Hamilton. This affects the pizza industry. iv) An influx of immigrants in a city affects the purchases of houses in the city. v) A technological advancement allows manufacturers to make cheaper motorcycles