ECONOMICS
MARKETS AND PRICES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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More bikes sold, but at a higher price
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Fewer bikes sold, but at a higher price
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More bikes sold, but at a lower price
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Fewer bikes sold, but at a lower price
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Detailed explanation-1: -If the government decides to subsidize the production of a good, the result would be a decrease in the equilibrium price and a decrease in the equilibrium quantity. If the price of one of the resources used to produce a good decreases: The supply curve for that good would shift right.
Detailed explanation-2: -MARKETS: Equilibrium is achieved at the price at which quantities demanded and supplied are equal.
Detailed explanation-3: -In a free market, the incentive for profit drives people and businesses to create products that consumers want. If they don’t, they will go out of business. That forces companies to constantly innovate and improve efficiencies in order to create a good product at a low price.
Detailed explanation-4: -which of the following would shift the supply curve for a product to the right? an increase in the price of a resource used in the good’s production.