Question 2 (1 point) _u Relative to the initial equilibrium, when demand increases and supply decreases, there will be O an indeterminant change in price and a decrease in quantity. 0 an increase in price and an indeterminant change in quantity. 0 a decrease in price and an indeterminant change in quantity. 0 an indeterminant change in price and an increase in quantity. Question 3 (1 point) _u A surplus occurs when O the current price is equal to the equilibrium price. 0 people want to buy more than what others are willing to sell at that price. 0 the current price is above the equilibrium price. 0 the current price is below the equilibrium price. Question 4 (1 point) I: Relative to the initial equilibrium, when supply decreases, there will be 0 an increase in price and an increase in quantity. 0 an increase in price and a decrease in quantity. 0 an indeterminant change in price and an increase in quantity. 0 a decrease in price and a decrease in quantity. Question 5 (1 point) _I: Normal goods are those where 0 an increase in price causes a decrease in demand. O an increase in income causes a decrease in demand. O an increase in income causes an increase in demand. 0 an increase in price causes an increase in demand. Question 6 (1 point) _I: An increase in supply for a particular good can be caused by O a new excise tax imposed on sellers of the good. 0 an increase in the technology used to produce the good. 0 an increase in the price of that good. 0 an increase in the wages of workers who produce the good. Question 7 (1 point) 1:) Listen u A decrease in income will cause 0 an increase in quantity demanded for a normal good. 0 an increase in demand for a normal good. 0 a decrease in quantity demanded for a normal good. 0 a decrease in demand for a normal good. Question 8 (1 point) _Il Which of the following scenarios would definitely cause the price of good or service to increase? (Check all that apply.) 3 increase in demand; no change in supply :] no change in demand; increase in supply :] no change in demand; decrease in supply :] decrease in demand; decrease in supply :] increase in demand; decrease in supply :] decrease in demand; increase in supply :] decrease in demand; no change in supply :] increase in demand; increase in supply Question 9 (1 point) I: Select the best matches from the lists below. there is an inverse relationship between price and the quantity consumers are willing to purchase, law of demand all else equal there is a direct relationship between price and the quantity producers are willing to sell, all else equal quantity demanded the result when the quantity demanded is less than the quantity supped equilibrium demand the result when the quantity demanded is greater than the Shortage quantity supplied the result when the quantity quantity supplied demanded is equal to the quantity supped relationship between prices and surplus 6. _ _ _ quantities supplied relationship between prices and supply quantities demanded the maximum quantity producers are law of supply willing to sell at a particular price the maximum quantity consumers are willing to purchase at a particular price Question 10 (1 point) I: If good A and good B are complements, then 0 a decrease in the price of good A will decrease the demand for good B. O an increase in the price of good A will increase the demand for good B. 0 an increase in the price of good A will decrease the demand for good B. 0 one typically consumes either good A or good B, but not both together. Question 11 (1 point) 1)) Listen u A subsidy is O a tax paid on assets, paid after a person dies. 0 a per unit tax levied on a particular good. 0 an excise tax levied on an imported good. 0 money the government gives to someone for producing or consuming a particular good or service. Question 12 (1 point) 1)) Listen B At the market equilibrium price 0 everyone who wants to buy and sell at that price is able to do so 0 all buyers and sellers are happy. 0 people want to buy more than what others are willing to sell at that price. 0 people want to sell more than what others are willing to buy at that price. Question 13 (1 point] I:I When there is excess supply in the market 0 we cannot determine if prices are likely to rise or fall in response to this situation. 0 there is no pressure for prices to rise or fall. 0 there is pressure for prices to fall. 0 there is pressure for prices to rise. Question 14 (1 point) I: Relative to the initial equilibrium. when demand increases, there will be 0 an increase in price and an increase in quantity. O a decrease in price and a decrease in quantity. 0 a decrease in price and an increase in quantity. 0 an increase in price and a decrease in quantity. Question 15 (1 point] I: Relative to the initial equilibrium, when both the demand curve and supply curves shift right, there will be 0 a decrease in price and an indeterminant change in quantity. O an indeterminant change in price and a decrease in quantity. 0 an increase in price and an indeterminant change in quantity. 0 an indeterminant change in price and an increase in quantity. Question 16 (1 point} I When there is excess demand in the market O there is no pressure for prices to increase or decrease. O we cannot determine if prices are likely to increase or decrease in response to this situation. O there is pressure for prices to increase. O there is pressure for prices to decrease. Question 17 (1 point} I When quantity supplied is less than quantity demanded at a particular price O there is excess demand. O we cannot determine if there is a shortage or a surplus. O there is excess supply. O the market is in equilibrium. Question 18 (1 point} I If. at the current price, buyers are willing to purchase 5 units while sellers are willing to sell 5 units. then 0 we cannot determine if the market is in equilibrium. O there is excess demand. O the market is in equilibrium. O there is excess supply