When the quantity of cars supplied is smaller than the quantity of cars demanded the market price of cars will tend to:1 pointIncreaseStay the sameDecreaseIncrease or decrease

The price of large automobiles rises (with the price of small autos remaining the same):

Say the following 2 events occur at the same time: 1) a decrease in the price of steel, an input in the production of cars; 2) an increase in the price of gasoline, a complement of cars. The following 2 events would lead to a(n) _________ in the market price and a(n) __________ in the market quantity of cars.1 pointincrease; indefinite changeindefinite change; indefinite changeindefinite change; decreaseindefinite change; increasedecrease; indefinite change

Under the basic principle of supply, as the price goes down, manufacturers and suppliers of a product tend to supply less of the product to the market.Select one:TrueFalse

Question 12If the price of a good is held above the equilibrium price:1 pointdemand will decrease.quantity demanded will exceed quantity supplied.quantity supplied will exceed quantity demanded.supply will increase.

If price is above the equilibrium level, competition among sellers to reduce the resulting:Multiple Choicesurplus will decrease quantity demanded and increase quantity supplied.shortage will increase quantity demanded and decrease quantity supplied.shortage will decrease quantity demanded and increase quantity supplied.surplus will increase quantity demanded and decrease quantity supplied.