Which of the following statements is true?

a

An increase in taxes on a good increases the supply of the good.

b

A drop in subsidies on a good increases the supply of the good.

c

A drop in the price of an alternate good increases the supply of the other good.

d

All of the above.

e

Only a) and b)

Question 30(1 point)

Which of the following statements is true?

a

Alternate goods are those that are produced in the same plant for about the same cost.

b

The expectation that the price of a good will fall significantly in the near future increases today's supply of the good.

c

Equilibrium is the state of rest of the market.

d

All of the above.

e

Only a) and b)

Question 31(1 point)

Which of the following statements is true?

a

The equilibrium will remain the same until either the demand curve or the supply curve shifts.

b

Equilibrium is the point at which the demand curve and supply curve intersect.

c

At the equilibrium, there is a single equilibrium price (P*) and the quantity demanded of the good equals the quantity supplied of the good.

d

All of the above.

e

Only a) and b)