Question 21 1 pts So far, we've assumed that our markets are "perfectly competitive". Which of these answers is NOT compatible with this assumption? Some firms are big enough to influence the market price. All firms produce the same thing, There are many firms in the market. There are many small buyers in the market. O Firms take the market price as given Question 22 1 pts Home buyers and sellers both expect home prices in Blacksburg to rise next year. How does that effect the market for homes in Blacksburg right now? Those expectations shift demand back and supply back. Those expectations shift demand out and supply back Those expectations shift demand back and supply out. CO2 Those expectations shift demand out and supply out. (Figure: Market for Cars) Use the figure to answer the question. A B Price Price Supply Supply New price Old price Old price New price . Now demand Old demand Old New Quantity quantity quantity Old demand New demand Quantity New Old quantity quantity D Price Price Now supply Old supply Old supply New supply New price Old price Old price New price Demand Demand Now Old quantity quantity Quantity New Old quantity quantity Quantity In 2011, Japan suffered a major earthquake and tsunami. Honda parts that were sourced from Japan could New demand Old demand Old New Quantity quantity quantity Old demand New demand Quantity New Old quantity quantity D Price Price New supply Old supply Old supply Now supply B New price Old price Old price New price Demand Demand New Old quantity quantity Quantity Old New Quantity quantity quantity In 2011, Japan suffered a major earthquake and tsunami. Honda parts that were sourced from Japan could no longer be produced, which caused Honda to cut its production of cars. Which graph shows the effect of this shortfall? Graph A O Graph C Graph D Graph B. D Question 24 1 pts Diminishing marginal utility can help explain why... the supply curve slopes up. marginal costs increase. the demand curve slopes down. some goods are inferior. D Question 25 1 pts In a free market, if price is "too low" then, there is a surplus and price will rise O quantity sold is equal to quantity demanded. there is a shortage and supply will shift out. Othere is a shortage and demand will shift back there is a shortage and price will rise