3 Quiz - 1. Suppose that in 2007 Ford sold 500,000 Mustangs...

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1. Suppose that in 2007 Ford sold 500,000 Mustangs at an average price of $18,800 per car; in 2008, 600,000 Mustangs were sold at an average price of $19,500 per car. These statements: A) suggest that the demand for Mustangs decreased between 2007 and 2008. B) suggest that the supply of Mustangs must have increased between 2007 and 2008. C) suggest that the demand for Mustangs increased between 2007 and 2008. D) constitute an exception to the law of demand in that they suggest an upsloping demand curve. 2. Suppose that in each of four successive years producers sell more of their product and at lower prices. This could be explained: A) by small annual increases in supply accompanied by large annual increases in demand. B) in terms of a stable supply curve and increasing demand. C) in terms of a stable demand curve and increasing supply. D) as an exception to the law of supply. 3. At the point where the demand and supply curves for a product intersect: A) the selling price and the buying price need not be equal. B) the market may, or may not, be in equilibrium.
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This note was uploaded on 04/22/2010 for the course ECO 112 taught by Professor Smith during the Spring '10 term at Bowling Green.

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3 Quiz - 1. Suppose that in 2007 Ford sold 500,000 Mustangs...

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