Question $12$ pts

At the market equilibrium, the quantity demanded is equal to the quantity supplied.

Group of answer choices

True

False

Flag question: Question $2$

Question $22$ pts

Economic welfare is always maximized when the market forces are left alone to arrive at its own equilibrium.

Group of answer choices

True

False

Flag question: Question $3$

Question $32$ pts

When both demand and supply curves are shifted to the right, the new market equilibrium price will be the same as the old equilibrium price.

Group of answer choices

True

False

Flag question: Question $4$

Question $42$ pts

The effects of a shift in supply on consumers and producers depend largely on the elasticity of demand.

Group of answer choices

True

False

Flag question: Question $5$

Question $52$ pts

Everyone gains from trade as the total economic welfare is higher when countries open up to trade.

Group of answer choices

True

False

Flag question: Question $6$

Question $62$ pts

Assume demand is perfectly inelastic. That is$,$ regardless of the price, the quantity demanded as always equal to $10,000$ units. What happens to price when the unit production cost of every producer falls by $$1?$

Group of answer choices

Price drops by $$1.$

Price increases by $$2.$

We need to know the slope of the supply curve to determine the price change.

Price is unchanged.

Flag question: Question $7$

Question $73$ pts

The demand and supply curves for electronic scooters in a closed economy are given by the following equations.

Demand: P $=2000-$ Qd

Supply: P $=800+2$Qs

What is the total producer surplus generated in this market?

Group of answer choices

$$160,000$

$$320,000$

$$80,000$

$$40,000$

Flag question: Question $8$

Question $83$ pts

Please refer to the information given in Q$7.$ Now this economy opens up to trade and the world price is $$1,000.$ Which of the following statements are true? Please select all that apply.

Group of answer choices

This country will import electronic scooters.

This country will export electronic scooters.

Domestic producer will gain from trade.

Domestic consumers will gain from trade.

Flag question: Question $9$

Question $92$ pts

Assume that we have observed a change in the market equilibrium for a certain product due to simultaneous shifts in both demand and supply. Both equilibrium quantity and equilibrium price increase. Which of the following statements is true?

Group of answer choices

The demand curve must have shifted to the right.

The supply curve must have shifted to the right.

The demand curve must have shifted to the left.

The supply curve must have shifted to the left.

We can't be sure.