7. If the price of a product decreases, we would expect: Demand to increase Quantity supplied to decrease Supply to decrease Quantity supplied to increase 8. "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 11. 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 13. 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
