A lower quantity demanded of a good reflects. ceteris paribus.


Question 29 A lower quantity demanded of a good reflects, ceteris paribus: Lower income. A downward shift of the supply curve
se. Question 30 SOOOO Which of the following would not cause the market supply of cell phones to change? Telecommunications a
Question 31 Assume that pencils and pens are substitutes. If the price of pencils rises, then we will see: An increase in the
Question 32 If a price ceiling is to be binding, it should be set: Below the equilibrium price and it will create a market sh

Answer

29. Option C ( A higher price of the good.) Explanation- A change in demand means there has been a shift in the demand curve and a change in quantity demanded means that price has changed and there will be movement along the demand curve. Therefore, a lower quantity demanded represent a higher price of the good. 30. Option C ( A reduction in the demand for cell phones causes the price to fall.) Explanation- Increase or decrease in Market supply depends upon the production costs and the number of sellers present in the market. Therefore,  a reduction in the demand for cell phones causes the price to fall would not change the market supply. 31. Option A( increase in the demand of pens) Explanation- Substitute goods are those which can be used in place of one another. So, when the prices of pencils increase buyer will move to pens which will increase the demand for the pens. 32 option A ( below the equilibrium price and it will create shortage) Explanation-

Price ceiling is the maximum price that can be charged in the market. For price ceiling to be binding it should be less than the equilibrium price. Since ceiling price will be below equilibrium price it will lead to excess demand for goods which will lead to shortage.

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