Question

An increase in the demand for bananas combine with an increase in the supply of bananas will cause the market

Select one:

a. equilibrium price to decrease

b. equilibrium quantity to decrease

c. equilibrium quantity to increase

d. equilibrium price to increase

According to the article, online and third party sellers of hand sanitizer are ___________ their Prices due to the ____________ of hand sanitizer in stores.

Select one:

a. Decreasing : Surplus

b. Decreasing : Shortage

c. Increasing : Surplus

d. Increasing : Shortage

Goods that are both rival and excludable are

Select one:

a. Public Goods

b. Quasi Public Goods

c. Common Property Goods

d. Private Goods

If the price elasticity of demand for hand sanitizer is 0.2 and prices RISE by 60% what percentage will quantity demanded CHANGE by

Select one:

a. -15%

b. -12%

c. -120%

Government are likely to create price ceilings on products to

Select one:

a. protect vulnerable producers

b. to result in equilibrium

c. protect low income consumers

d. to keep the price high

The cost of steel to make motor vehicles has increased and at the same time as the price of public transport has fallen. How will this affect the demand and supply for motor vehicles?

Select one:

a. Demand will increase and Supply will decrease

b. Demand will increase and Supply will increase

c. Demand will decrease and Supply will increase

d. Demand will decrease and Supply will decrease

Suppose that the equilibrium price and equilibrium quantity of new houses both increase. Which of the following could be a cause of this change?

Select one:

a. Both the supply and demand for new houses increased and the supply increased by more than the demand.

b. The demand for new houses increased and the supply did not change

c. Both supply and demand for new houses decreased

d. The supply of new houses decreased and the demand for new houses did not change.

Answer 1

1. An increase in the demand for bananas combine with an increase in the supply of bananas will cause the market " equilibrium quantity to increase "

2. According to the article, online and third party sellers of hand sanitizer are "increasing" their Prices due to the "shortages" of hand sanitizer in stores

3. Goods that are both rival and excludable are "Private goods"

A private good is an asset that is both excludable and rivalrous. It is excludable in that it is possible to exercise private property rights over it and preventing those who have not paid from using the good or consuming its benefits

4. Answer is "12%"

PED = %age change in Ouantity demanded / %age change in Price

0.2 = %age change in Ouantity demanded / 60 %

%age change in Ouantity demanded = 12 %

5. Government are likely to create price ceilings on products to "protect low income consumers"

Price ceiling may take place when government believes that the good is necessary and high prices may affect consumers.

6. The answer is " Demand will increase and Supply will decrease "

Faling price of Public transport will increase demand and increase in the price of raw material used in to make motor vehicle will result in higher prices for consumers and low demand for motor vehicles.

7. The answer is " The demand for new houses increased and the supply did not change ".

If demand increased it will result in Demand curve to shift towards right leading to increase in price and Quantity demanded, at the same time supply curve reamins the same.