The Law of Supply and Demand Answers

8 verified answers

The price of blue widgets rises to $6.Assuming that all other factors remain the same, how should the factory respond to this increase of price?

by decreasing the number of blue widgets supplied

by increasing the number of blue widgets supplied

by increasing the number of green widgets supplied

Free Preview

Which events could cause the change in supply shown on this graph? Check all that apply.

A producer goes out of business.

A new company joins the marketplace.

A natural disaster causes production to drop.

A company begins to produce more goods.

What does this demand curve demonstrate?

Demand increases as prices decrease.

Demand increases as prices increase.

Prices decrease as demand decreases.

Prices remain the same as demand increases.

Which events could cause the change in demand shown on this graph?Check all that apply.

A product becomes more popular.

The number of consumers interested in a product drops.

A company's competitor lowers its prices.

A company offers a better product than its competition.

Where is the equilibrium point on this graph?

where the demand curve begins and the supply curve ends

where the demand curve and the supply curve cross each other

where the supply curve begins and the demand curve ends

where both curves begin heading downward

"A" represents the new quantity supplied, while "B" represents the new quantity demanded.

Answers:

Selection 1:excess supply

Selection 2:They should fall.

"A" represents the new quantity supplied, while "B" represents the new quantity demanded.

Answers:

Selection 1:excess supply

Selection 2:They should fall.

✔ They should fall.X They should rise.They should stay the same.

✔ They should fall.

X They should rise.

They should stay the same.

Did you find these answers helpful?

More from this Course