Supply Demand Equilibrium

The law of demand states that as price increase quantity demanded increase (ceteris paribus)

• True

• False

Increase in the price of a substitute good will shift supply curve to the right

• True

• False

A more efficient production technology will shift demand curve to the right

• True

• False

At equilibrium price, supply equals demand

• True

• False

When demand increase, both equilibrium price and equilibrium quantity will rise

• True

• False