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Questions and Answers
If both the demand and supply for a good increase, what is the effect on the equilibrium price?
If both the demand and supply for a good increase, what is the effect on the equilibrium price?
- The equilibrium price becomes unpredictable
- The equilibrium price rises
- The equilibrium price remains unchanged
- The equilibrium price falls (correct)
When there is a decrease in demand combined with a decrease in supply, what would happen to the market price of a product?
When there is a decrease in demand combined with a decrease in supply, what would happen to the market price of a product?
- The market price would remain unchanged
- The market price would increase (correct)
- The market price would decrease
- The market price would fluctuate randomly
In the context of minimum wage and unemployment, what happens if workers with minimum wage jobs earn more money from working?
In the context of minimum wage and unemployment, what happens if workers with minimum wage jobs earn more money from working?
- Unemployment remains unaffected
- Unemployment becomes cyclical (correct)
- Unemployment decreases
- Unemployment increases
If a price ceiling is set above the equilibrium price of a product, what is the likely outcome?
If a price ceiling is set above the equilibrium price of a product, what is the likely outcome?
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