When the price of a good is above the equilibrium, there will be
A shortage
A surplus.
Unemployment
Inflation
Correct answer is B
If the price of a good is above equilibrium, this means that the quantity of the good supplied exceeds the quantity of the good demanded. There is a surplus of the goods on the market.
Two commodities X and Y are in joint supply when
X is a by-product of Y
X and Y are produced by the same firm
Increase in the quantity of X leads to a decrease in Y
X and Y cannot be produced in the same process
Correct answer is B
No explanation has been provided for this answer.
Supply of agricultural products is likely to be elastic in the
Intermediate period
Long-run
Market period
Short-run
Correct answer is B
The elasticity of supply measures how changes in prices would affect supply. The supply of agricultural products is most likely to be elastic in the long run, (a period of time where all factors of production and costs are variable). This means that in the long run, the cost of farm inputs and factors of production used in farming would be subject to change, and farmers cannot as a matter of fact place a fixed cost on their estimated expenses.
Which of the following factors is not a condition for a change in the supply of a commodity?
Improved technology
Cost of production
The price of the commodity
Government tax policies
Correct answer is C
Some of the factors that may cause a change in supply include; changes in the costs of production, improvements in technology, taxes, subsidies, weather conditions, health of livestock, and also by the price of other products.
The price of the commodity itself does not affect the change in supply, but rather it affects the change in the quantity supplied.
What effect will an increase in the supply of fish have on the meat market?
A fall in equilibrium price and quantity
An increase in equilibrium price and quantity
An increase in equilibrium price and a fall in quantity
Both equilibrium price and quantity will remain unchanged
Correct answer is D
If there is an increase in supply while the demand tends to remain the same, prices will most likely fall.
So an increase in the supply of fish in the market will only affect the demand and price of the fish as they may be more fish in the market than people who are willing and ready to buy the fish. This, however, will not affect the prices or the quantity demanded of meat.