Question

1. Occurs when quantity supplied > quantity demanded at a given price

Excess supply (is this correct)

Result in elasticity

Result in equilibrium price

Excess demand

2. Which of the following statements is true

The supply curve shows the relationship between quantity demanded and price of the good or service

The Law of Demand helps to explain social behavior

In the law of supply, an increase in price results in an increase in quantity supplied. (Is this correct)

When consumer income rises. The demand for normal goods decreases.

3. Which of the following factors contribute to the Tragedy for the Commons

Value of the resource is great

The resource is open access, a public good, available to many

The more the resource is used by one person, the less there is for others

All of the above is this correct

Answer 1

1. Option A.

• When the quantity supplied exceeds quantity demanded there is excess supply in the market.
• This will create surplus in the market and the demand decreases.
• But when the quantity demanded exceeds quantity supplied then there is excess demand in the market.

2. Option C.

• According to the law of demand, all others held constant, an increase in the price of a good will result in an increase in quantity supplied.

3. Option D.

• Tragedy of commons refers to a situation in which people or firms try to extract maximum utility from a shared resource with greater value which decreases it's availability for other people or firms.