Answer to Question #238614 in Economics of Enterprise for Likenaw

Question

An increase in demand results in which of the following changes in the commodity’s equilibrium 

price and quantity?

A. Price rises and quantity falls.

B. Price falls and quantity rises.

C. Price and quantity both rise.

D. Price and quantity both fall.

Which one of the following is not related to GDP

A. It measures the current production only.

B. It measures the values of final goods and services produced within the country.

C. It includes gross private domestic investment in capital goods.

D. It takes into account final goods and services only.

MC curve and AC curve are the mirror reflections of

A. AVC and AFC.

B. AVC and TVC.

C. MP and AP.

D. TP and AP.

Answer 1

A. Price rises and quantity falls.

When the demand increases, the price also increases as the quantity is lowered to match the supply.

D. It takes into account final goods and services only.

The GDP takes into account every service and good produced, exports and imports as well as government spending.

C. MP and AP

MC tends to be a mirror of MP