What is the long term effect on the market if there is anincreasein theprice of resources? (hint - inputs costs have gone up)

Select one:

a.It will cause an increase in supply.

b.It will cause a decrease in supply.

c.It will cause a decrease in demand.

d.It will cause an increase in demand.

e.It will cause a decrease in the quantity supplied (short term concept).

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What is theeffect of a shortage?

Select one:

a.It will cause a decrease in the price, leading to an increase in the quantity supplied and a decrease in the quantity demanded.

b.It will cause a decrease in the price, leading to a decrease in the quantity supplied and an increase in the quantity demanded.

c.It will cause an increase in the price, leading to a decrease in the quantity supplied and an increase in the quantity demanded.

d.It will cause an increase in the price, leading to an increase in the quantity supplied and a decrease in the quantity demanded.

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What is theeffect ona normal productif income increases?

Select one:

a.It will cause an increase in supply.

b.It will cause an increase in the quantity demanded (short term concept).

c.It will cause a decrease in supply.

d.It will cause an increase in demand.

e.It will cause a decrease in demand.

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What will cause the demand for anormal producttodecrease? (hint: read carefully - what is a normal good? what causes us to buy more? to buy less?)

Select one:

a.An increase in the size of the population.

b.An increase in the price of a complementary product.

c.The expectation by consumers that future prices will be higher.

d.An increase in income levels.

e.An increase in the price of a substitute product.

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If the price of a product does not change immediately,which of the following will cause aninitial shortageof a product?

Select one:

a.An increase in the demand or a decrease in the supply.

b.A change in the quantity supplied.

c.A decrease in the demand or a decrease in the supply.

d.An increase in the demand or an increase in the supply.

e.A decrease in the demand or an increase in the supply.