QN=108 (17187) In a competitive market, the price of a product

a. (i) is determined by buyers and the quantity of the product produced is

determined by sellers.
b. (ii) is determined by sellers and the quantity of the product produced is
determined by buyers.
c. (iii) And the quantity of the product produced are both determined by sellers.
d. None of (i), (ii), and (iii) is correct.

in a competitive market, the quantity of a product produced and the price of the
product are determined by
a. a single seller
b. all buyers and all sellers
c. a single buyer
d. one buyer and one seller working together

QN=79 (17224) What will happen to the equilibrium price of new textbooks
if more students attend college, paper becomes cheaper, textbook authors
accept lower royalties, and fewer used textbooks are sold?
a. Price will rise.
b. Price will fall.
c. Price will stay exactly the same.
d. The price change will be ambiguous.

QN=111 (17225) Pens are normal goods. What will happen to the
equilibrium price of pens if the price of pencils rises, consumers experience
an increase in income, writing in ink becomes fashionable, people expect
the price of pens to rise in the near future, the population increases, fewer
firms manufacture pens, and the wages of pen-makers increase?
a. Price will rise.
b. Price will fall.
c. Price will stay exactly the same.
d. The price change will be ambiguous.
QN=141 (17265) Scenario 5-2
The supply of aged cheddar cheese is inelastic, and the supply of bread is
elastic. Both goods are considered to be normal goods by a majority of
consumers. Suppose that a large income tax increase decreases the
demand for both goods by 10%.

Refer to Scenario 5-2. The equilibrium price will

a. increase in the aged cheddar cheese market and increase in the bread
market.
b. increase in the aged cheddar cheese market and decrease in the bread
market.
c. decrease in the aged cheddar cheese market and increase in the bread
market.
d. decrease in the aged cheddar cheese market and decrease in the bread
market.

QN=123 (17264) Scenario 5-2

The supply of aged cheddar cheese is inelastic, and the supply of bread is
elastic. Both goods are considered to be normal goods by a majority of
consumers. Suppose that a large income tax increase decreases the
demand for both goods by 10%.

Refer to Scenario 5-2. The change in equilibrium price will be

a. greater in the aged cheddar cheese market than in the bread market.
b. greater in the bread market than in the aged cheddar cheese market.
c. the same in the aged cheddar cheese and bread markets.
d. may be greater in either the aged cheddar cheese market or the bread
market.