2
1 point
Assume electricity is a significant input to the production of batteries. If the price of electricity increases sharply then:
the equilibrium price and quantity both increase.
the equilibrium price and quantity both decrease.
the equilibrium price increases and the equilibrium quantity decreases.
the equilibrium price decreases and the equilibrium quantity increases.
3
1 point
When quantity supplied is greater than the quantity demanded, the market is said to exhibit:
a surplus, and the price should rise to eliminate the surplus.
a surplus, and the price should fall to eliminate the surplus.
a shortage, and the price should rise to eliminate the shortage.
a shortage, and the price should fall to eliminate the shortage.
4
1 point
When quantity supplied is less than the quantity demanded, the market is said to exhibit:
a surplus, and the price should rise to eliminate the surplus.
a surplus, and the price should fall to eliminate the surplus.
a shortage, and the price should rise to eliminate the shortage.
a shortage, and the price should fall to eliminate the shortage.