Microeconomics
ECS 2601
, Assignment 01
1. An increase in supply tends to increase the equilibrium price and quantity.
1. True
2. False
2. If pizza and hamburgers were substitutes, a decrease drop in the price of pizza would
increase the demand for hamburgers.
1. True
2. False
3. The price elasticity of supply is likely to be greater for motor vehicles in general than
for aspecialised market, such as sport utility vehicles.
1. True
2. False
4. The sum of consumer and producer surplus is a measure of the economic well-being
of asociety.
1. True
2. False
5. In the long run, all costs are fixed.
1. True
2. False
ECS 2601
, Assignment 01
1. An increase in supply tends to increase the equilibrium price and quantity.
1. True
2. False
2. If pizza and hamburgers were substitutes, a decrease drop in the price of pizza would
increase the demand for hamburgers.
1. True
2. False
3. The price elasticity of supply is likely to be greater for motor vehicles in general than
for aspecialised market, such as sport utility vehicles.
1. True
2. False
4. The sum of consumer and producer surplus is a measure of the economic well-being
of asociety.
1. True
2. False
5. In the long run, all costs are fixed.
1. True
2. False
