Question

e in the supply of a product would 13. A decreas likely be caused by most 20. (a) an increase in business taxes (b) an increase in consumer incomes (c) a decrease in resource costs for (d) a decrease in the price of a complementary good 14. lf the quantity supplied of a product is greater than the quantity demanded for a product, then (a) there is a shortage of the product by there is a surplus of the product (c) the product is a nomal good (d) the product is an inferior good 15. f the price of a product is below the equilibrium price, the result will be (a) a surplus of the good (b) a shortage of the good (c) a decrease in the supply of the good (d) an increase in the demand for the good

Answer 1

Ans. 13 a) an increase in business taxes

An increase in business taxes increases the cost of production and producer charges the higher price from the consumers due to the higher cost of production and in the given time period supply will decrease when taxes in business increases.

Ans. 14 b) there is a surplus of the product

when quantity supply of the product greater than quantity demand of the product that means there is an excess quantity of the product ( i.e. a surplus of the product) and other factors remain the same

Ans. 15 b) a shortage of the good

if the price of the product is below the equilibrium price, the result will be a shortage of the good ( i.e. at price below the equilibrium price, quantity demand greater than quantity supply) and other factors remain the same