Supply 1

Based on the information in the graph, if the government limits the price of the item offered so that it cannot rise above $0.75, the result will be —

• an excess supply

• an excess demand (shortage) of 240 units

• a consumer surplus of $1.00

• an excess surplus of 240 units

Based on the information in the graph, what is the equilibrium price of pizza?

• $2.00

• $4.00

• $3.00

• $5.00

In a supply and demand graph, what likely happens if the cost of parts for automobile products decreases?

• The demand curve for automobiles shifts to the right.
• The supply curve for automobiles shifts to the right.
• The supply curve for automobiles shifts to the left.
• The demand curve for automobiles shifts to the left.

Veronica has been wearing a popular perfume for several years. Recently the price increased by $10, which she has not been able to afford on her modest salary. Many of her friends are in the same position. How will the price likely affect the quantity demanded and supplied?

• Supply will stay the same, and demand will increase.
• Supply will decrease, and demand will increase.
• Supply will increase, and demand will decrease.
• Supply will increase, and demand will stay the same.