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Subject - Economics:

Microeconomics

MCQ - 5-4015

Question:

Suppose the market for roses is currently in equilibrium. If the supply of roses falls, while at the same time the demand for roses rises, what can you say about the price and quantity of roses in the market?

  1. Price and quantity both rise.
  2. Price rises, but the change in quantity is ambiguous.
  3. Price and quantity both fall.
  4. Price rises, but the change in quantity is ambiguous.
  5. Neither price nor quantity change, as these shifts offset one another.

Correct Answer: B

Explanation:

If demand increases and supply decreases, the price definitely rises. The quantity is ambiguous and depends upon which effect is stronger. Draw these shifting curves in the margin of your exam book.

Record Performance

269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: Suppose the market for roses is currently in equilibrium. If the supply of roses falls, while at the same time the demand for roses rises, what can y .... s in the market? , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 5-4015.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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