Reference no: EM131092050
1. Given stable demand and supply curves for product "X", we can expect a government-mandated increase in the price of "X" to:
a. increase the supply of "X" and decrease the demand for "X".
b. increase the demand for "X" and decrease the supply of "X".
c. increase the quantity supplied and decrease the quantity demanded of "X".
d. decrease the quantity supplied of "X" and increase the quantity demanded of "X".
2. If the supply and demand curves for a product both decrease, we can say that equilibrium:
a. quantity must fall and equilibrium price must rise.
b. price must fall, but equilibrium quantity may either rise, fall, or remain unchanged.
c. quantity must decline, but equilibrium price may either rise, fall, or remain unchanged.
d. quantity and equilibrium price must both decline.
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