Question 13 Given these schedule for the supply and demand for widgets, derive the demand equation, supply equation, equilibrium price and equilibrium quantity. Demand equation: Alpha ---> 490 Beta ---> 25 P Qd P Qs Supply equation: 465 440 Alpha ---> -30 415 UAWNA 15 390 30 Beta ---> 25 365 45 Equilibrium Price ---> 13 Equilibrium Quantity ---> 165Question 14 Which of the following statements is true? O When the price of an item goes up, the demand for that item will go down. When the price of an item goes up, the supply of that item will go down. An increase in the demand for an item will cause the price of that item to go up. An increase in the supply of an item will cause the price of that item to go up. Question 15 Which of the following statements is false? O There is a direct (positive) relationship between price and quantity supplied. There is a direct (positive) relationship between price and supply. O A change in the supply of an item will cause a change in its price, but a change in the price of an item will not cause a change in its supply. When the price of an item goes down, the quantity supplied will go down, but the supply will not change. Question 16 Which of the following statements is true? A price ceiling set below the equilibrium price in a particular market will cause a shortage. O A price floor set below the equilibrium price in a particular market will cause a shortage. O A price floor set above the equilibrium price, in a particular market, will have no effect on that market. O A price ceiling set above the equilibrium price, in a particular market, will cause a surplus.Question 17 Which of the following is true? O Rent control is an example of a price floor. O A price ceiling on some item, set below its equilibrium price, creates rationing problems. O A price ceiling on gasoline, set below its current equilibrium price, would assure that everyone would be able to buy gasoline at an affordable price. A price floor for a resource, such as the minimum wage, set above its equilibrium price, would increase the demand for that resource. Question 18 A decrease in the price of an item, say a widget, will cause: O The demand for an item to ris O The supply of an item to rise. The demand for an item to fall. O The quantity demanded to rise. Question 19 Which of the following is not a determinant of demand? O Household's income and wealth. The price of the item O Changes in the price of a related good Consumers' expectations about their income, wealth and or the price of the itemQuestion 20 Which of the following would cause the supply curve for widgets to shift to the left? O An increase in the price of widgets O A decrease in the price of widgets O An increase in the cost of producing widgets O An increase in the price of zeres, a jointly produced good. Question 21 Which of the following is not correct? A price ceiling set below the equilibrium price of an item, say a zerc, could result: O A surplus of zercs A shortage of zerce O A black market where zeres are sold for a price higher than the price ceiling O Queuing for favoritism to replace the price mechanism as a rationing device Question 22 An argument that some economists make against the minimum wage is that: O If it is too high, it will cause fewer workers to be demanded. It will decrease production costs and ultimately make the price of the product they produce too low. O It will cause too many workers to be demanded. All of the above are valid arguments against the minimum wage