Question 24 Incorrect 0.00 points out Of 1.00 F Flag question According to the law of supply, assuming other factors are held constant Select one: a. as the price of milk decreases, the quantity of milk supplied will decrease. b. as the price of milk increases, the quantity of milk purchased by consumers will decrease. - c. as the supply for milk increases, the price of milk will also increase. d. as the price of milk increases, the quantity of milk supplied will decrease. Incorrect. This is not consistent with the law of supply. Question 28 Incorrect 0.00 points out of 1.00 \\V Flag question In a market with an upward sloping supply curve and a downward sloping demand curve, when the actual price must be higher than the equilibrium price, there will be Select one: a. an increase in the price. b. excess demand. c. quantity higher than the equilibrium quantity d. excess supply. Incorrect. If the actual price is higher than the equilibrium price, the quantity that prevails will not be higher than the equilibrium quantity. Question 39 Incorrect 0.00 points out Of 1.00 \\V Flag questiun From an initial equilibrium. suppose there's an increase in demand. Once the market reaches its new equilibrium, there will be Select one: a. fewer transactions, and they will take place at a lower price. b. more transactions, and they will take place at a lower price. c. more transactions, and they will take place at a higher price. d. fewer transactions, and they will take place at a higher price. Incorrect. Check the impact of a higher demand on quantity and price at equilibrium Question 44 Incorrect 0.00 points out of 1 .00 \\V Flag question Last year Hawaii did not received many rain storms and with eight months of little rain there was low demand for umbrellas. This year however, there have been three months of big rain storms and only a few weeks of sunny weather. If you were to draw a graph depicting the changing market for umbrellas from last year to this, how would the new equilibrium price and quantity demanded compare to last year's market? Select one: a. b c. d With supply of umbrellas being constant, With supply of umbrellas being constant, With supply of umbrellas being constant, With supply of umbrellas being constant, to last year. equilibrium price increases and quantity demanded decreases for umbrellas compared to last year. equilibrium price and quantity demanded increase for umbrellas compared to last year. equilibrium price and quantity demanded decrease for umbrellas compared to last year. equilibrium price decreases and quantity demanded increases for umbrellas compared 8 Incorrect. The equilibrium price would not decrease