1. If the price of a product decreases, we would expect:

Demand to increase

Quantity supplied to decrease

Supply to decrease

Quantity supplied to increase

2. "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

3. 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

4. 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