price determination :D

Rise in price of chocolate will cause rise in equillibrium price of candy

• true

• false

EQ price rises and EQ quantity falls when

• Decrease in demand < increase in supply

• Decrease in supply > decrease in demand

• Increase in demand = increase in supply

• Decrease in supply = decrease in demand

If consumer taste shifts in favour of LBDs, then EQ quantity and EQ price will

• Both decrease

• Decrease and increase respectively

• Both increase

• Increase and decrease respectively

Maximum price ceiling results in

• Excess supply

• both

• neither

• Excess demand

When price of a good is less than EQ price, its price starts

• rising

• falling

• falls then rises

• rises then falls

Price floor can also be called

• Minimum retail price

• Minimum price below EQ price

• Minimum support price

• All of the above

Each firm is Price maker and industry is price taker.

• True

• False

At equilibrium price there is either excess or shortage of demand and supply.

• True

• False

A)- Market Price is less than equilibrium price

(R)- Quantity demanded is more than quantity supplied

• Both A and R are true and R is the correct explanation of A.

• Both A and R are true but R is NOT the correct explanation of A.

• A is true but R is false.

• A is false but R is true

Which of the following is not a reason for shift in supply curve?

• a) Change in price of factors of production

• b) Change in state of technology

• c) Change in tastes and preferences

• d) Change in price of other goods