Question

Question 21 (1 point)

hen a shortage of housing exists, it can be eliminated by imposing rent controls that hold rental rates below the market (equilibrium) levels.

Question 21 options:

	True
	False

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Question 22 (1 point)

If the demand and the supply of a product both decrease, equilibrium price will rise.

Question 22 options:

	True
	False

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Question 23 (1 point)

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Consumers will buy more "inferior goods" as incomes rise.

Question 23 options:

	True
	False

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Question 24 (1 point)

Surpluses of a particular good can be expected to result in higher prices for that good in a "free market" economy.

Question 24 options:

	True
	False

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Question 25 (1 point)

If market demand increases and market supply decreases, the change in equilibrium price is unpredictable without first knowing the exact magnitudes of the demand and supply changes.

Question 25 options:

	True
	False

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Question 26 (1 point)

A decrease in supply of good X increases the equilibrium price of X, which increases the demand for X and automatically returns the price of X to its initial level.

Question 26 options:

	True
	False

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Question 27 (1 point)

In competitive markets, every consumer willing and able to pay the market price can buy a product and every producer willing and able to sell the product at that price can do so.

Question 27 options:

	True
	False

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Question 28 (1 point)

There will be a surplus of a given product when consumers are willing to buy more than producers offer to sell.

Question 28 options:

	True
	False

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Question 29 (1 point)

When the price of a good decreases, the demand for its complement will increase.

Question 29 options:

	True
	False

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Question 30 (1 point)

An increase in the demand for gasoline, accompanied by a decrease in the supply of gasoline, will cause the price to rise but may cause the quantity purchased to increase, decrease, or remain the same.

Question 30 options:

	True
	False

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Answer 1

21) False, because rent control below the equilibrium prices will lead to excess demand in the market and will thus lead to rationing.

22) False, the equilibrium price will remain same or will decrease.

23) False because the inferior goods are goods for which demand decreases with increase in the income.

24) False higher supply will lead to lower prices as maket supply will shift downward towards right.

* For solution to other question please post as adifferent question.