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16) If demand increases while supply decreases for a particular good:
a. its equilibrium price will increase while the quantity of the good produced and sold could increase, decrease, or remain constant.
b. the quantity of the good produced and sold will decrease while its equilibrium price could increase, decrease, or remain constant.
c. the quantity of the good produced and sold will increase while its equilibrium price could increase, decrease or remain constant.
d. its equilibrium price will decrease while the quantity of the good produced and sold could increase, decrease, or remain constant.

17) The quantity of product X supplied can be expected to rise with a fall in:
a. prices of competing products.
b. price of X.
c. energy-saving technical change.
d. input prices.

19) If the production of two goods is complementary a decrease in the price of one will:
a. increase supply of the other.
b. increase the quantity supplied of the other.
c. decrease the price of the other.
d. decrease supply of the other.

25)Demand Analysis. The Crank Yankers DVD (season two) has been a hot seller during recent weeks. An analysis of weekly demand shows:

Q = 3,000 - 90P

where Q is DVD sales and P is price.

A. How many DVDs could be sold at a $20 price?

B. Calculate the point price elasticity of demand at a price of $20.

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Solution Summary

This job finds the point price elasticity of demand and other factors.

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16) If demand increases while supply decreases for a particular good:
a. its equilibrium price will increase while the quantity of the good produced and sold could increase, decrease, or remain

constant.
b. the quantity of the good produced and sold will decrease while its equilibrium price could increase, decrease, or remain

constant.
c. the quantity of the good produced and sold will increase while its equilibrium price could increase, decrease or remain

constant.
d. its equilibrium price will decrease while the quantity of the good ...

Purchase this Solution


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