chapter 3 - 14. Gas lines in the 1970s were caused by Price...

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1. When demand rises and supply stays the same equilibrium quantity rises 2. When supply rises and demand stays the same,  Equilibrium quantity rises 3. At the equilibrium price, quantity demanded is Equal to quantity supplied 4. When quantity demanded is greater than quantity supplied, Market price will rise 5. What happens to quantity supplied when price is lowered? It falls 6. What happens to quantity demand when price is raised? It falls 7. When market price is above equilibrium price, Market price will fall 8. At equilibrium, quantity demanded is always  equal to quantity supplied 9. Market price must be equal to  equilibrium price 10. A demand schedule is determined by the wishes of  Buyers 11. In Figure 1, if market price were $110, there would be A shortage 12. In Figure 1, if tmarket price were $149, there would be  A surplus 13. Market price may not reach equilibrium if ther are Both price ceilings and price floors
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Unformatted text preview: 14. Gas lines in the 1970s were caused by Price ceilings 15. Statement 1: Price ceilings cause shortages. Statement 2: Interest rates are set by supply and demand, but wage rates are not Statement 1 is true and statement 2 is false 16. If the equilibrium price of corn is $3 a bushel, and the government imposes a floor of $4 a bushel, the price of corn will Increase to $4 17. Usury laws tend to Create a shortage of loanable funds 18. If the price system is allowed to function without interference and a shortage occurs, quantity demand will fall and 1 will rise . 19. A price floor is above equilibrium price and causes surpluses 20. An increase in supply while demand remains unchanged will lead to A decrease in equilibrium price and an increase in equilibrium quantity 21. A decrease in demand while...
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