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Home / Questions / Resource X is necessary to the production of good Y. If the price of resource X falls, the

# Resource X is necessary to the production of good Y. If the price of resource X falls, the

Resource X is necessary to the production of good Y. If the price of resource X falls, the equilibrium price of Y will ______________ and the equilibrium quantity of Y will

a.rise; rise.

b.fall; fall.

c.fall; rise.

d.rise; fall.

164.Resource X is necessary to the production of good Y. If the price of resource X rises, the _____________ curve for good Y will shift ____________ resulting in a(n) _____________ in the equilibrium price of Y and a(n) ____________ in the equilibrium quantity of Y.

a.supply; rightward; decrease; increase.

b.demand; leftward; decrease; decrease

c.demand; rightward; increase; increase

d.supply; leftward; increase; decrease

e.supply; leftward; increase; increase

165.Good Y is an inferior good. If the average income of those who buy good Y rises, the _____________ curve for good Y will shift ____________ resulting in a(n) _____________ in the equilibrium price of Y and a(n) ____________ in the equilibrium quantity of Y.

a.supply; rightward; decrease; increase.

b.demand; leftward; decrease; decrease

c.demand; rightward; increase; increase

d.supply; leftward; increase; decrease

e.supply; leftward; increase; increase

166.Good X is a normal good. If the average income of those who buy good X rises, the _____________ curve for good X will shift ____________ resulting in a(n) _____________ in the equilibrium price of X and a(n) ____________ in the equilibrium quantity of X.

a.supply; rightward; decrease; increase.

b.demand; leftward; decrease; decrease

c.demand; rightward; increase; increase

d.supply; leftward; increase; decrease

e.supply; leftward; increase; increase

167.There is a technological improvement in the production of good X.  As a result, the _____________ curve for good X will shift ____________ resulting in a(n) _____________ in the equilibrium price of X and a(n) ____________ in the equilibrium quantity of X.

a.supply; rightward; decrease; increase.

b.demand; leftward; decrease; decrease

c.demand; rightward; increase; increase

d.supply; leftward; increase; decrease

e.supply; leftward; increase; increase

168.One reason that helps to explain the law of supply is the law of

a.diminishing marginal utility.

b.diminishing marginal returns.

c.decreasing opportunity costs.

d.demand.

169.When P = \$5, the quantity demanded of a good is 30 units, and the quantity supplied of the good is 50 units.  For every \$1 decrease in the price of this good, quantity demanded rises by 5 units and quantity supplied falls by 5 units.  The equilibrium price of this good is ___________and the equilibrium quantity of this good is _________ units.

a.\$3; 40

b.\$4; 35

c.\$2; 45

d.\$2; 35

e.\$3; 35

170.When P = \$65, the quantity demanded of a good is 80 units, and the quantity supplied of the good is 40 units.  For every \$10 increase in the price of this good, quantity demanded falls by 10 units and quantity supplied rises by 10 units.  The equilibrium price of this good is ___________and the equilibrium quantity of this good is _________ units.

a.\$55; 30

b.\$75; 50

c.\$75; 70

d.\$85; 50

e.\$85; 60

171.When income rises for the buyers of good X, the ____________ curve for good X will shift ________________.

a.demand; rightward

b.demand; leftward

c.supply; rightward

d.supply; leftward

e.This question cannot be answered unless we know whether good X is a normal good, a neutral good, or an inferior good.

Dec 09 2019 View more View Less Get Solution