ECONOMICS For HI : 04

The law of supply states that price and quantity supplied are

• inversely related, ceteris paribus.

• directly related, ceteris paribus.

• not related.

• fixed.

A leftward shift of a product supply curve might be caused by

• an improvement in the relevant technique of production.

• a decline in the prices of needed inputs.

• an increase in consumer incomes.

• some firms leaving an industry.

An improvement in production technology will

• increase equilibrium price.

• shift the supply curve to the right.

• shift the supply curve to the left.

• shift the demand curve to the left.

A market is in equilibrium

• provided there is no surplus of the product.

• at all prices above that shown by the intersection of the supply and demand curves.

• is the amount producers want to sell equal to the amount consumers want to buy.

• whenever the demand curve is downsloping and the supply curve is upsloping.

Which of the following will not shift a supply curve?

• a change in the price of relevant resources

• a change in the good's own price

• a change in the number of sellers

• a change in per-unit costs brought about by a change in taxes.

Based on the attached table, determine:

The equilibrium price and quantity

Based on the attached table, determine:

The price at which surplus occurs

Based on the attached table, determine:

The price at which a shortage occurs

1. What is the equilibrium price and equilibrium quantity of chocolate?

How much is the surplus or shortage in the market if the market price of chocolate is RM32 per box?