Suppose a competitive market has a downward-sloping demand curve and a horizontal supply curve. if the supply curve shifts downward, equilibrium price will equilibrium quantity will consumer surplus will and producer surplus will a. decrease; increase; increase; b. not change decrease; increase; c. not change; increase decrease; d. decrease; increase; not change; e. decrease; increase; increase; decrease.

The correct answers are 1- decrease, 2- increase, 3- increase and 4- not change.

Explanation: If the supply curve shifts downward, equilibrium price will decrease, equilibrium quantity will increase, consumer surplus will increase, and producer surplus will not change.

The answer is: decrease, increase, increase, not change

Explanation:

When the horizontal supply shifts down, it means that the producers are willing to accept a lower price for the quantities that they produce, the equilibrium quantity will therefore increase as the quantities demanded at the lower prices increase.

Consumer surplus is the difference between the highest price a consumer is willing to pay and the actual price that they pay for a good or service. Since the price is now lower at the quantities demanded, the consumer surplus is now higher after the shift in the supply curve.

Producer surplus is the difference between the lowest price a producer would be willing to accept and the market price. In a competitive market, goods are valued at the market price. Therefore, the lowest price a producer is willing to accept is equal to the marginal cost of production which in this case is also equal to the market price. The producer surplus in a competitive market is therefore zero since the lowest price is the market price and it does not change.

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.