Price formation in competitive markets - mixed Qs

Due to the corona crisis, demand for toilet paper increased tremendously. This caused...

• a shift of the supply curve to the right

• a shift along the demand curve towards equilibrium price

• a shift along the supply curve towards equilibrium price

• a shift of the demand curve to the right

The demand curve shifts to the right.

As a consequence the price...

• stays the same

• increases

• supply curve shifts to the right

• decreases

Due to increased market demand of a good (= shift of demand curve) the price for this good increases and there will be movement

• along the supply curve to the right

• along the demand curve to the left

• shift of the supply curve to the right

• shift of the supply curve to the left

Due to an increase in production costs

• the supply shifts to the right

• the supply shifts to the left

• the demand curve shifts to the right

• the demand curve shifts to the left

Taxes on gas have the effect that

• the market supply curve for gas shifts to the left

• the demand for gas decreases

• the price for gas increases

• the market demand curve for gas shifts to the left

Subsidies affect price formation by

• a shift of the supply curve to the right

• a shift of the demand curve to the right

• increasing the price of a good

• decreasing the price of a good

Which is a non-market based state intervention in the price mechanism?

• taxes

• subsidies

• fixed price

• price ceiling

A minimum price leads to

• excess supply

• excess demand

• supply gap

• demand gap

A price ceiling leads to a welfare ____________________

In a monopoly, if PED > 1

• the price effect is greater than the quantity effect

• the quantity effect is greater than the price effect

• revenue can be increased by a decrease of price

• revenue can be increased by an increase in price