Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Econ 9
Ch 3 Equilibrium KEY
These practice problems are not reflective of all material covered in class or the textbook.
1. If the demand for a product decreases, then we would expect equilibrium price
a.
to increase and equilibrium quantity to decrease.
b.
to decrease and equilibrium quantity to increase.
c.
and equilibrium quantity to both increase.
d.
and equilibrium quantity to both decrease.
ANS: D
2. If the supply of a product increases, then we would expect equilibrium price
a.
to increase and equilibrium quantity to decrease.
b.
to decrease and equilibrium quantity to increase.
c.
and equilibrium quantity to both increase.
d.
and equilibrium quantity to both decrease.
ANS: B
3. Equilibrium price must increase when demand
a.
increases and supply does not change, when demand does not change and supply
decreases, and when demand decreases and supply increases simultaneously.
b.
increases and supply does not change, when demand does not change and supply
decreases, and when demand increases and supply decreases simultaneously.
