In a competitive market if price of a certain good or service is decreased, we expect; a- Increase in demand for this product or service. b- Increase in supply of this productor service. Decrease in demand of this product or service. d- Nothing will change in the market. In a competitive market, when there is a supply excess, this situation is resolved as; a- The seller continues to sell at the same price until the excess amount sold. b- The seller decreases the price for increasing demand for this good or services. c New demands can be created at the same price. d- New suppliers came to produce the same goods services. In a competitive market, an increase in demand: a- will lead to an increase in both the equilibrium price and quantity.

For the first question, the correct answer is:<br /><br />B- Increase in demand for this product or service.<br /><br />Explanation: In a competitive market, if the price of a certain good or service is decreased, we expect an increase in demand for this product or service. This is because lower prices make the product or service more affordable for consumers, leading to higher demand.<br /><br />For the second question, the correct answer is:<br /><br />b- price for increasing demand for this good or services.<br /><br />Explanation: In a competitive market, when there is a supply excess, the situation is resolved by the seller decreasing the price to increase demand for this good or service. This is because lower prices make the product or service more attractive to consumers, leading to higher demand and helping to clear the excess supply.<br /><br />For the third question, the correct answer is:<br /><br />a- will lead to an increase in both the equilibrium price and quantity.<br /><br />Explanation: In a competitive market, an increase in demand will lead to an increase in both the equilibrium price and quantity. This is because higher demand puts upward pressure on the price, and the higher price incentivizes producers to supply more, leading to a higher equilibrium quantity.