A) In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X.
Removing the subsidy placed on product X years ago will
A. decrease S, increase P, and decrease Q.
B. increase S, increase P, and increase Q.
C. decrease S, increase P, and increase Q.
D. increase D, decrease P, and increase Q.
B) In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X.
An increase in the number of firms producing X will
A. increase S, decrease P, and increase Q.
B. decrease S, increase P, and decrease Q.
C. increase S, increase P, and increase Q.
D. decrease S, decrease P, and increase Q.
E. shift S left with no change in P and Q.
Answers: 1
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