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Last month, the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit. This month, the company supplied the same quantity of...

Last month, the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit. This month, the company supplied the same quantity of binders at $4 per unit. Based on this evidence, Tecumseh has experienced:

- a decrease in supply
- an increase in supply
- an increase in the quantity supplied
- a decrease in the quantity supplied

The price of digital cameras fell because of improvements in production technology. As a result, the demand for non-digital camera decreased. This caused the price of non-digital cameras to fall; as the price of non-digital cameras fell the demand for non-digital cameras decreased even further. Evaluate this statement.

- The statement is false because the demand for non-digital cameras would increase as the price of digital cameras fell.
- The statement is false. A decrease in the price of digital cameras would decrease the demand for non-digital cameras, but a decrease in the price of non-digital cameras would not cause the demand for non-digital cameras to decrease.
- The statement is false because it confuses the law of demand with the law of supply.
- The statement is false because digital camera producers would not reduce their prices as a result of improvements in technology; doing so would reduce their profits.

If in the market for apples the supply has decreased then:

- the supply curve for apples has shifted to the right
- there has been a movement upwards along the supply curve for apples
- the supply curve for apples has shifted to the left
- there has been a movement downwards along the supply curve for apples

In Singapore, the government places a $5,000 tax on the buyers of new automobiles. After the purchase of a new car, a buyer must pay the government $5,000. How would the imposition of the tax on buyers be illustrated in a graph?

- The tax will shift the demand curve to the right by $5,000
- The tax will shift the demand curve to the left by $5,000.
- The tax will shift both the demand and supply curve to the right by $5,000.
- The tax will shift the supply curve to the left by $5,000.

Which of the following is not a result of imposing a rent ceiling?

- Some consumer surplus is converted to producer surplus
- A reduction in the quantity supplied of apartments
- An increase in the quantity demanded of apartments
- The marginal benefit of the last apartment rented is greater than the marginal cost of supplying it.

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Last month, the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit.
This month, the company supplied the same quantity of binders at $4 per unit. Based on this
evidence,...

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