ausedby?A)?modities.?B)?modity.?C)?modity.?D)?e.?E)?noneoftheabove. Ans:?C5.GiventhesupplyanddemandcurvesdrawnforanormalgoodinFigure3-2,ecanbeexpectedtocause:?A)?equilibriumpriceandquantitytoincrease.?B)?equilibriumpricetoincreaseandequilibriumquantitytofall.?C)?equilibriumpricetoincreasewhileequilibriumquantityholdssteady.?D)?equilibriumpriceandquantitytofall.?E)?equilibriumpricetofallandequilibriumquantitytoclimb. Ans:?A6.LetP*andQ*representmarketclearingpriceandquantity,respectively.GiventhesupplyanddemandcurvesdrawninFigure3-2,anincreaseinthepriceofaninputemployedintheproductionofQcanbeexpectedtocause:?A)?P*andQ*toclimb.?B)?P*toclimbwhileQ*falls.?C)?P*toclimbwhileQ*holdssteady.?D)?P*tofallwhileQ*climbs.?E)?P*andQ*tofall. Ans:?B7.Anincreaseinpricewillleadtoalowerquantitydemandedbecause:
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