1. If the price of a product decreases, we would expect:
Demand to increase
Quantity supplied to decrease
Supply to decrease
Quantity supplied to increase
2. "Price" in the statement of the Law of Supply refers to:
The amount that buyers are willing and able to pay for each unit of the product
The cost of producing each unit of the product
The total revenues that sellers receives for selling a given quantity of the product
The total amount that buyers pay in order to acquire a given quantity of the product
3. A decrease in demand and an increase in supply will:
Affect price in an indeterminate way and decrease the equilibrium quantity
Increase price and affect the equilibrium quantity in an indeterminate way
Decrease price and affect the equilibrium quantity in an indeterminate way
Increase price and increase the equilibrium quantity
4. When producers (say, of roads) are not able to make all consumers pay for enjoying their product (i.e., the roads), they tend to see a:
Marginal cost of production that is too low, and there is a supply-side market failure
Marginal benefit of production that is too high, and there is a demand-side market failure
Marginal cost of production that is too high, and there is a supply-side market failure
Marginal benefit of production that is too low, and there is a demand-side market failure