Suppose That We Illustrate Demand and Supply with Quantity on the Horizontal

question 77

Multiple Choice

Suppose that we illustrate demand and supply with quantity on the horizontal axis and price on the vertical axis. Which of the following statements is false?

• A)The equilibrium remains unchanged unless an exogenous variable changes.
• B)The equilibrium is represented as the intersection of supply and demand curves.
• C)When a shift in demand or supply occurs, a comparative statics analysis compares the old and the new equilibrium points.
• D)A change in price will cause a shift in the demand curve.

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Definitions:

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Attractiveness

The quality that makes something appealing or desirable.

Production Function

An equation that specifies the output that a firm can produce with various combinations of inputs, reflecting the relationship between input and output quantities.