MEDIUM
Earn 100

What happens to equilibrium quantity when both demand and supply decrease simultaneously?

50% studentsanswered this correctly

Important Questions on Determination of Income and Employment

MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
What is the effect of a price floor set above the equilibrium price?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
What happens when a binding price ceiling is lifted in a market?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
How does a tax imposed on sellers affect market equilibrium?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
How does a decrease in the price of a complementary good affect the market equilibrium of a commodity?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
How do government-imposed quotas on production affect market equilibrium?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
What effect does an improvement in production technology have on market equilibrium?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
At what level of price do the firms in a perfectly competitive market supply when free entry and exit is allowed in the market?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
What is the outcome if the government sets a price support above the equilibrium price?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
What happens if a subsidy is removed from a market where the subsidy was previously applied to producers?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
What will happen if the government imposes a tax on both buyers and sellers?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
What is the impact of a simultaneous tax on buyers and subsidy to sellers on market equilibrium?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
In what scenario does the burden of a tax fall entirely on consumers?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
What happens to the market for a good if a substitute good becomes more expensive?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
How does an increase in the price of a substitute good affect the equilibrium price and quantity of a commodity?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
How does an increase in consumer income affect the equilibrium of a normal good?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
How does a reduction in input prices affect the supply curve?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
What is the effect on equilibrium when a price floor is removed?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
What happens to the equilibrium price and quantity if the demand for a good is perfectly inelastic?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
What happens when the government imposes a price ceiling at the equilibrium price?
MEDIUM
Other Subjects>Economics>Determination of Income and Employment>Equilibrium Income in Short Run
How does a subsidy given to producers affect market equilibrium?