Question

question 9 9.09 pts in a competitive market, what happens to price and quantity when the supply of a good decreases? the price increases and the quantity decreases. the price increases and the quantity increases. the price decreases and the quantity decreases. the price decreases and the quantity increases. question 10 9.09 pts which factor was not provided in the article as a reason for limits being placed on ethanol used in fuel. ethanol attracts water into engines there is a limited amount of corn to be converted into ethanol. most car engines begin to erode when using too much ethanol. few people own vehicles with engines that can use high amounts of ethanol.

Explanation:

Question 9

In a competitive market, the supply - demand model is used. When supply decreases (the supply curve shifts left), with demand remaining the same, the equilibrium point changes. At the new equilibrium, the price will increase because there is less of the good available, and the quantity traded (quantity) will decrease as producers are supplying less.

To answer this, we analyze each option. Ethanol attracting water into engines (option 1) is a valid reason for limits. Limited corn for ethanol (option 2) is also a reason. Few people having engines that can use high ethanol (option 4) is a reason. However, the statement that most car engines begin to erode with too much ethanol is not a typical or provided reason (as engine erosion from ethanol is not a common or stated reason for ethanol fuel limits compared to the other options).

Answer:

A. The price increases and the quantity decreases.

Question 10