1. Given a demand function Qd =60-10P and a supply function Qs = 10P, find the equilibrium quantity and price. Answers are in numbers. A. Q = 20; P = 2 B. Q=30; P = 3 C. Q=20; P=3 D. Q = 30; P = 2 2. A market is modeled by the following demand and supply functions: Qd = 60 - 10P and Qs = 10P. If P=$5, determine if there is an equilibrium, excess supply (surplus), or excess demand (shortage). Answers are in numbers. A. 0 (Equilibrium) B. 20 (Surplus) C. 40 (Surplus) D. 20 (shortage) 3. An increase in both demand and supply will A. Increase quantity, and increase price B. Decrease quantity, and decrease price C. Increase quantity, and may increase, reduce or leave price unchanged D. Decrease quantity, and may increase, reduce or leave price unchanged 4. A decrease in demand and an increase in supply will A. Reduce price but may increase, decrease, or leave quantity unchanged. B. Increase price but may increase, decrease, or leave quantity unchanged. C. Reduce price but increase quantity D. Increase price but reduce quantity

1. Given a demand function Qd =60-10P and a supply function Qs = 10P, find the equilibrium quantity and price. Answers are in numbers. A. Q = 20; P = 2 B. Q=30; P = 3 C. Q=20; P=3 D. Q = 30; P = 2 2. A market is modeled by the following demand and supply functions: Qd = 60 - 10P and Qs = 10P. If P=$5, determine if there is an equilibrium, excess supply (surplus), or excess demand (shortage). Answers are in numbers. A. 0 (Equilibrium) B. 20 (Surplus) C. 40 (Surplus) D. 20 (shortage) 3. An increase in both demand and supply will A. Increase quantity, and increase price B. Decrease quantity, and decrease price C. Increase quantity, and may increase, reduce or leave price unchanged D. Decrease quantity, and may increase, reduce or leave price unchanged 4. A decrease in demand and an increase in supply will A. Reduce price but may increase, decrease, or leave quantity unchanged. B. Increase price but may increase, decrease, or leave quantity unchanged. C. Reduce price but increase quantity D. Increase price but reduce quantity

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 10P

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