When will a shortage occur in a market?

Which of the following determines the quantity demande Show more PLEASE eXPLAIN WHY YOU CHOSE THAT ANSWER. 1. Which of the following determines the quantity demanded of a commodity? a. the # of buyers b. the income levels of consumers c. the price of the commodity d. consumers expectations e. the prices of related commodities 2. The downward slope of the demand curve is attributed to: a. the inverse relationship between income and quantity demanded b. the inverse relationship between price and quantity demanded. c. the direct relationship between price and quantity demanded. d. the direct relationship between consumer preferences and quantity demanded e.the direct relationship between income and quantity demanded 3. Which of the following will cause an increase in the quantity demanded of ice cream at an ice cream store? a. A new ice cream flavor is introduced at the store. b. The onset of summer brings about an increase in the temperature. c. The store introduces a limited period offer of 20 percent off on the price of ice cream. d. The income of the stores consumers increases. e. The price of frozen yogurt that is sold at the store is reduced by 5 percent. 4. The output level that occurs in any market that is in equilibrium: a. is an output level where buyers will not pay as much as suppliers require. b. is the quantity where the demand and supply curves intersect each other. c. is the quantity at an output level where buyers will pay more than suppliers require. d. is the quantity where the supply curve intersects the y-axis. e. is the quantity where the demand curve intersects the x-axis. 5. Margarine and butter can both be used as a spread on toast. This means that they are: a. independent goods. b. substitute goods. c. inferior goods. d. complementary goods. e. Giffen goods. 6. Other things remaining unchanged which of the following is a determinant of the quantity supplied of a good? a. The income levels of consumers b. The preferences of consumers c. The price expectations of producers d. The cost of inputs used in production e. The price of the product 7. A rightward shift of a market supply curve might be caused by: a. an increase in the wages of labor employed in the industry. b. an increase in the supply of a substitute good. c. the entry of new firms in the industry. d. a decrease in the income of consumers. e. an increase in the price of the final product. . 8. When will a shortage occur in a market? a. When the quantity available at zero price is insufficient to meet demand b. When quantity supplied is greater than the equilibrium quantity c. When a price floor is set in the market d. When the quantity that consumers are willing and able to purchase decreases e. When the actual price is lower than the equilibrium price 9. In a market where the price is restricted by price floors or price ceilings a. disequilibrium will automatically correct itself. b. all sellers will be able to sell everything they produce. c. all buyers will get what they want. d. surpluses and shortages will exist. e. surpluses and shortages will put pressure on the price to move to its equilibrium. PLEASE eXPLAIN WHY YOU CHOSE THAT ANSWER. Show less

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