Economics > EXAM > ECON 705 Practice quiz 1 (100 out of 100) Questions and Answers (All)

ECON 705 Practice quiz 1 (100 out of 100) Questions and Answers

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If there is no change in supply, a decrease in demand will lead to Select one: a. falling prices and a lower quantity bought/sold. b. falling prices and a higher quantity bought/sold. c. rising pri... ces and a lower quantity bought/sold. d. rising prices and a higher quantity bought/sold. The few days before a busy travel weekend (e.g., Fourth of July), gasoline prices are expected to Select one: a. decrease to encourage more consumption on the exact travel day. b. increase, and the quantity of gasoline bought and sold is expected to increase. c. increase, and the equilibrium quantity of gasoline bought and sold will decrease as the price rises. After a hurricane, many cities impose anti-price-gouging laws, where sellers are prohibited from charging significantly more than they were before the hurricane. A likely result of this law is that Select one: a. there will be a shortage of necessary supplies in hurricane areas. b. sellers in other areas (out of the hurricane's path) will have more incentive to provide the damaged regions with necessary supplies. c. residents will be able to obtain all necessary rebuilding supplies at acceptable prices. [Show More]

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