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[kyledyr]

1.In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X, (2) the equilibrium price (P) of X and (3) the equilibrium quantity (Q) of X.

Refer to the above. An increase in income, if X is a normal good, will:
Answer
increase D, increase P, and increase Q.
increase D, increase P, and decrease Q.
increase S, increase P, and increase Q.
decrease D, increase P, and increase Q.
2. Other things equal, if the price of a key resource used to produce product X falls, the:
Answer
product supply curve of X will shift to the right.
product demand curve of X will shift to the right.
product supply curve of X will shift to the left.
product supply curve of X will not shift.
3. In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X, (2) the equilibrium price (P) of X and (3) the equilibrium quantity (Q) of X.

Refer to the above. A decrease in the number of consumers of product X will:
Answer
decrease S, decrease P, and decrease Q.
increase D, increase P, and increase Q.
decrease D, decrease P, and decrease Q.
decrease D, decrease P, and increase Q.
4. Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information we can conclude that:
Answer
The supply of clothing has grown faster than the demand for clothing.
Demand for clothing has grown faster than the supply of clothing.
The supply of and demand for clothing have grown by the same proportion.
There is no way to determine what has happened to supply and demand with this information.
5. (Advanced analysis) Answer the question on the basis of the following information. The demand for commodity X is represented by the equation P = 10 - 0.2Q and supply by the equation P = 2 + 0.2Q.

Refer to the above information. The equilibrium price for X is:
Answer
$2.
$4.
$6.
$7.