Supply and Demand Assignment | Homework For You
Which one of the following will result in a decline in the demand for oil?
 A rise in oil prices.
 A decrease in oil prices.
 A recession in the USA and Europe.
 The discovery of new oil deposits in the Seychelles.
2.2 Which one of the following statements is correct ?
 A rise in the price of a good will cause the supply curve of that good to shift to the right.
 A fall in the price of a good will result in a rightward shift of the demand curve, ceteris paribus.
 A rise in technological capabilities will result in a leftward shift of the supply curve.
 A decrease in the prices of the factors of production used to produce a certain product will give rise to an increase in the supply of the product.
2.3 Which one of the following statements is correct ?
 Equilibrium is often observed in our daily lives.
 A market is in equilibrium when demand is equal to supply.
 At any price above the equilibrium price there will be an excess demand for the product.
 At any price below the equilibrium price the resulting excess supply will put a downward pressure on the price. Get Economics homework help today