What is our agreement regarding exceptions to the Law of Demand?

a.We will recognize that they do exist, but that they are not common and we will ignore them in future discussions

b.They prove that the Law of Demand is invalid

c.They are quite common, but we will ignore them because they are too difficult to incorporate into the analysis of demand

d.They are quite common and economists have created an entirely separate Demand Analysis of Exceptional Products to deal with them

Suppose that Supply decreases and Demand decreases in a market. What will the new equilibrium look like?

a.The equilibrium price and equilibrium quantity will remain the same (unchanged)

b.The equilibrium price and equilibrium quantity will both increase

c.The equilibrium price and equilibrium quantity will both decline

d.The equilibrium price will increase, and the equilibrium quantity will decline

e.The equilibrium price and decrease, and the equilibrium quantity will increase

f.The equilibrium quantity will increase, but we cannot tell what will happen to the equilibrium price from this data

g.The equilibrium quantity will decrease, but we cannot tell what will happen to the equilibrium price from this data

Group of answer choices

If supply exceeds demand, a surplus will result. The surplus will subsequently cause the market price to

Increase

Decrease

Remain the same until a ceteris paribus variable changes

Change, but there is no way of knowing if it will be higher or lower