QUESTION 11 Which of the following statements is false OA A change in the supply of an item will cause a change in its price, but a change in the price of an item will not cause a change in its...

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Extracted text: QUESTION 11 Which of the following statements is false OA A change in the supply of an item will cause a change in its price, but a change in the price of an item will not cause a change in its supply. O8 When the supply curve for an item shifts to the right, ceteris paribus, it will cause the price of that item to go up. OC There is a direct (positive) relationship between price and quantity supplied. OD When the price of an item goes down, ceteris paribus, the quantity supplied will go down, but the supply will not change. QUESTION 12 Which of the following does not explain why is there an inverse (negative) relationship between price and quantity demanded? OA Income effect - that is, a price change can affect the amount of some item you can afford to purchase. On When the price of an item increases, you buy more because it is more valuable. OC Diminishing marginal utility -- as you consumer more, as the result of a price decrease, the additional satisfaction received from the additional units consumed will start to go down. OD Substitution effect - that is, a price change can affect the opportunity cost of purchasing some item and your willingness to switch to (or from) another item. QUESTION 13 Which of the following statements is true OA A price floor set above the equilibrium price, in a particular market, will have no effect on that market. OA price floor set below the equilibrium price in a particular market will cause a shortage. OCA price ceiling set below the oquilibrium price in a particular market will cause a shortage. OBA price ceiling set above the equilibrium price, in a particular market, will caase a surplus. QUESTION 14 Which of the following is true? OA A price ceiling on some item, set below its equilibrium price, creates rationing problems. O Rent control is an example of a price floor. OCA price ceiling on gasoline, set below its current equilibrium price, would assure that everyone would be able to buy gasoline at an affordable price. OD A price floor for a resource, such as the minimum wage, set above its equilibrium price, would increase the demand for that resource.