ECS1501
ASSIGNMENT 6
SEMESTER 2, 2022
, 1. In a competitive market, supply and demand decrease simultaneously. The effect on
equilibrium quantity is a decrease.
A. True
B. False
C. Unsure
2. If the demand for motor vehicles decreases due to a drop in consumer income, and if, at
the same time, increases in factor prices cause the supply of motor vehicles to decrease,
the price of motor vehicles will decrease.
A. True
B. False
C. Unsure
3. The market for CDs is in equilibrium. Then an increase in the supply of CD players leads
to a decrease in the price of CD players and, simultaneously, a technological innovation
reduces the cost of manufacturing CDs. The equilibrium price of CDs will decrease and
the equilibrium quantity of CDs will either increase, decrease, or stay the same.
A. True
B. False
C. Unsure
4. Oil is the main component in the manufacture of plastic bags. If the price of oil were to
increase, the price of plastic bags would decrease and the quantity would decrease.
A. True
B. False
C. Unsure
ASSIGNMENT 6
SEMESTER 2, 2022
, 1. In a competitive market, supply and demand decrease simultaneously. The effect on
equilibrium quantity is a decrease.
A. True
B. False
C. Unsure
2. If the demand for motor vehicles decreases due to a drop in consumer income, and if, at
the same time, increases in factor prices cause the supply of motor vehicles to decrease,
the price of motor vehicles will decrease.
A. True
B. False
C. Unsure
3. The market for CDs is in equilibrium. Then an increase in the supply of CD players leads
to a decrease in the price of CD players and, simultaneously, a technological innovation
reduces the cost of manufacturing CDs. The equilibrium price of CDs will decrease and
the equilibrium quantity of CDs will either increase, decrease, or stay the same.
A. True
B. False
C. Unsure
4. Oil is the main component in the manufacture of plastic bags. If the price of oil were to
increase, the price of plastic bags would decrease and the quantity would decrease.
A. True
B. False
C. Unsure
