Reference no: EM13176321
1) Which of the following is NOT an application of supply and demand analysis?
a. the quantity of output consumers are willing to purchase at each possible market price.
b. the difference between quantity demanded and quantity supplied at each price.
c. the maximum level of output an industry can produce, regardless of price.
d. the quantity of output that producers are willing to produce and sell at each possible market price.
2) An increase in wages, capital costs and income in the market for a normal good will lead to
a) A decrease in supply, an increase in demand in the market, and a higher equilibrium price.
b) A decrease in supply for the goods and services in the market, and a higher equilibrium price.
c) A decrease in demand for the goods and services in the market, and a higher equilibrium price.
d) A decrease in supply and an increase in demand in the market, but we cannot know the direction of the price change without further information
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Applications of supply and demand analysis
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