211 Final Exam 1 Questions And Answers Fully Solved

Which of the following correctly describes how price adjustments eliminate a shortage? As the price rises, the quantity demanded decreases while the quantity supplied increases. As the price rises, the quantity demanded increases while the quantity supplied decreases. As the price falls, the quantity demanded decreases while the quantity supplied increases. As the price falls, the quantity demanded increases while the quantity supplied decreases. {Ans: As the price rises, the quantity demanded decreases while the quantity supplied increases.}When the price of fresh apples rises, There is a decrease in the quantity supplied of apples and a movement down along the supply curve for fresh apples. There is an increase in the quantity supplied of apples and a movement up along the supply curve for fresh apples. There is an increase in supply and a rightward shift of the supply curve. There is a decrease in supply and a leftward shift of the supply curve. {Ans: There is an increase in the quantity supplied of apples and a movement up along the supply curve for fresh apples.}Refer to the figure above. Technology advances in the smartphone industry. What best describes the result in the smartphone market? A B C