ENVR 210 CLICKER QUESTIONS Chapter 4 – Question Set #3

Holding the nonprice determinants of supply constant, a change in price would 1. result in either a decrease in supply or an increase in supply. 2. result in a movement along a stationary supply curve. 3. result in a shift of demand. 4. have no effect on the quantity supplied.

If the demand for a product increases, we would expect 1. equilibrium price to increase and equilibrium quantity to decrease. 2. equilibrium price to decrease and equilibrium quantity to increase. 3. equilibrium price and equilibrium quantity both to increase. 4. equilibrium price and equilibrium quantity both to decrease.

Increase and Decrease in Demand

Suppose that demand increases and supply decreases. What would you expect to occur in the market for the good? 1. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. 2. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. 3. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. 4. Both equilibrium price and equilibrium quantity would increase.