Quizzes - BrainMass

1

If income tax decreases, what happens to the demand curve?

Shifts to the right

Shifts to the left

Nothing because income is a determinant of supply

It will not shift but there will be a movement along the demand curve

2

Of the following, which is a special determinant of the supply of good X?

The technology used in the production of X

The price of X

The price of a substitute of X in production

The price of a complement of X in production

3

In equilibrium:

Qd > Qs

Qs > Qd

Qd = Qs

We cannot know

4

If there is a surplus,

the market is in balance

there is excess supply

there is excess demand

the price will rise

5

If price is lower than the equilibrium price,

there will be a surplus

there will be a shortage

the market clears

any of the above is possible

Economics, Basic Concepts, Demand-Supply-Equilibrium