When a shortage exists in the market, the price is belowequilibrium. Consequently, buyers are willing to buy more thansellers are willing to sell at that price. If demand and supplycurves do not move, more will be sold only if the priceincreases.
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True
False
Question text
If Betty experiences a decrease in pay, we would expect Betty’sdemand for inferior goods to increase.
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True
False
A decrease in supply causes price to rise, demand to fall andquantity supplied to decrease.
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True
False
If an increase in income increases the demand for a good, thenthe good is described as a substitute good.
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True
False
Question text
A rightward shift of the supply curve will decrease price, whichwill increase quantity demanded and decrease quantity supplied. Thenew market equilibrium will be at a lower price and higher quantitythan the initial price and quantity.
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True
False
