Question : 40) Which of the following statements true? A) An increase in : 1388159

40) Which of the following statements is true?

A) An increase in demand causes an increase in equilibrium price; the increase in price causes supply to increase.

B) A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in quantity demanded.

C) If both demand and supply decrease, there must be a decrease in equilibrium price; equilibrium quantity may either increase or decrease.

D) If demand increases and supply decreases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.

41) Which of the following statements is true?

A) A decrease in demand causes a decrease in equilibrium price; the decrease in price causes supply to decrease.

B) A decrease in demand causes equilibrium price to fall; the decrease in price then results in a decrease in quantity supplied.

C) If both demand and supply increase, there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease.

D) If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.

42) An increase in the equilibrium price for a product will result

A) when the quantity demanded for the product exceeds the quantity supplied.

B) when there is a decrease in supply and an increase in demand for the product.

C) when there is a decrease in supply and a decrease in demand for the product.

D) when there is an increase in demand and an increase in the number of firms producing the product.

43) An increase in the equilibrium quantity of a product will result

A) when the quantity supplied of the product exceeds the quantity demanded.

B) when there is an increase in supply and an increase in demand for the product.

C) when there is an increase in supply and a decrease in demand for the product.

D) when there is an decrease in demand and a decrease in the cost of inputs used to make the product.

44) When Toyota introduced its 2010 Prius, it announced that the average retail price of the 2010 model would be lower than the average retail price was for the equivalent 2009 model. Which of the following would explain the price differential?

A) The demand for the Prius had increased, and the supply of the Prius remained unchanged.

B) The supply of the Prius had decreased, and the demand for the Prius remained unchanged.

C) The demand for the Prius had decreased, and the supply of the Prius had increased.

D) The demand for the Prius had increased, and the supply of the Prius had decreased.

45) Which of the following would cause an increase in the equilibrium price and decrease in the equilibrium quantity of watermelon?

A) a decrease in demand and an increase in supply

B) a decrease in supply

C) an increase in demand and an increase in supply greater than the increase in demand

D) an increase in demand and an increase in supply

46) Which of the following would cause a decrease in the equilibrium price and decrease in the equilibrium quantity of papayas?

A) a decrease in supply and an increase in demand

B) a decrease in demand

C) an increase in supply and an increase in demand greater than the increase in demand

D) a decrease in supply and a decrease in demand

47) Select the phrase that correctly completes the following statement.  “A decrease in the number of manufacturers caused a decrease in the supply of sailboats. As a result,

A) the price of sailboats increased and the demand for sailboats decreased.”

B) the equilibrium quantity of sailboats increased.”

C) the price of sailboats increased and the quantity demanded of sailboats decreased.”

D) the price of sailboats increased.  The higher price caused the supply of sailboats to increase.”

48) Select the phrase that correctly completes the following statement.  “A decrease in the expected future price caused an increase in the supply of smartphones. As a result,

A) the price of smartphones decreased and the demand for smartphones increased.”

B) the equilibrium quantity of smartphones decreased.”

C) the price of smartphones decreased and the quantity demanded of smartphones increased.”

D) the price of smartphones decreased.  The lower price caused the supply of smartphones to decrease.”

49) What would happen in the market for knee replacement surgery if insurance companies started to cover a smaller portion of the cost of the surgery?

A) Demand will decrease, but this will not shift the supply curve.

B) Supply will decrease, but this will not shift the demand curve.

C) Demand and supply will both decrease.

D) Demand will decrease and supply will increase.