1. Assume production technology improved. At the same time, consumers’ income has increased and the good is a normal good. There are no other changes. Group of answer choices Demand increases Equilibrium quantity increases Demand decreases Supply increases Equilibrium quantity decreases Equilibrium price decreases Equilibrium price increases Supply decreases 2. A decrease in the number of buyers in the market and a decrease in resource prices at the same time. There are no other changes. Group of answer choices Increase in supply Decrease in supply Decrease in equilibrium price Decrease in equilibrium quantity Increase in equilibrium price Increase in equilibrium quantity Increase in demand Decrease in demand
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Andrew D.
1) Which of the following is NOT an application of supply and demand analysis? a. the quantity of output consumers are willing to purchase at each possible market price. b. the difference between quantity demanded and quantity supplied at each price. c. the maximum level of output an industry can produce, regardless of price. d. the quantity of output that producers are willing to produce and sell at each possible market price. 2) An increase in wages, capital costs and income in the market for a normal good will lead to a) A decrease in supply, an increase in demand in the market, and a higher equilibrium price. b) A decrease in supply for the goods and services in the market, and a higher equilibrium price. c) A decrease in demand for the goods and services in the market, and a higher equilibrium price. d) A decrease in supply and an increase in demand in the market, but we cannot know the direction of the price change without further information
2. If excess supply exists within a market ______. a) the quantity demanded exceeds quantity supplied and the price must decrease to reach the point of market equilibrium b) the quantity supplied exceeds the quantity demanded and price must increase to reach the point of market equilibrium c) the quantity supplied exceeds quantity demanded and the price must decrease to reach the point of market equilibrium d) the quantity demanded exceeds quantity supplied and the price must increase to reach the point of market equilibrium
Nick J.
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