#1
If the price of a product decreases and the quantity demanded increases, what is likely happening?
A movement along the demand curve
An increase in supply
A decrease in supply
A shift in the demand curve
#2
What is the likely effect of an increase in the price of laptops on the market for computer accessories?
An increase in demand for computer accessories
A decrease in supply of computer accessories
A decrease in demand for computer accessories
No effect on the market for computer accessories
#3
Which of the following is an example of a substitute good?
Peanut butter and jelly
Coffee and tea
Burgers and fries
Cars and gasoline
#4
Which of the following is NOT a determinant of demand?
Income
Price of related goods
Cost of production
Consumer preferences
#5
What is the likely effect of a decrease in the price of smartphones on the market for digital cameras?
Increase in demand for digital cameras
Decrease in supply of digital cameras
Decrease in demand for digital cameras
No effect on the market for digital cameras
#6
What is likely to happen to the supply of umbrellas during a rainy season?
It will decrease
It will increase
It will remain unchanged
It depends on the price elasticity of supply
#7
What is the relationship between price and quantity demanded according to the law of demand?
Positive
Negative
Neutral
Inverse
#8
Which of the following factors can cause a shift in the demand curve?
Changes in consumer preferences
Changes in the price of complementary goods
Changes in the price of substitutes
All of the above
#9
Which of the following is not a determinant of supply?
Technology
Taxes and subsidies
Price expectations
Consumer preferences
#10
Which of the following is a determinant of supply?
Income
Price of related goods
Number of buyers
Input prices
#11
If the government imposes a tax on a good, what happens to the equilibrium price and quantity?
Price increases, quantity decreases
Price decreases, quantity increases
Price decreases, quantity decreases
Price increases, quantity increases
#12
If the price of coffee increases, what happens to the equilibrium price and quantity of tea?
Price increases, quantity increases
Price decreases, quantity decreases
Price increases, quantity decreases
Price decreases, quantity increases
#13
Which of the following would cause a rightward shift of the supply curve?
An increase in the price of the good
A decrease in the price of inputs
An increase in taxes on the good
A decrease in technology
#14
If the demand for a product is inelastic, how would a decrease in price affect total revenue?
Increase
Decrease
Remain unchanged
Not enough information to determine
#15
What happens to the equilibrium price and quantity if both supply and demand increase?
Price increases, quantity decreases
Price decreases, quantity increases
Price decreases, quantity decreases
Price increases, quantity increases
#16
When the government imposes a price ceiling below the equilibrium price, what is the likely outcome?
A surplus
A shortage
No effect on the market
Equilibrium price increases
#17
Which of the following would most likely cause a decrease in the supply of oranges?
An increase in the price of oranges
A decrease in the price of apples (a substitute)
Advancements in orange farming technology
A decrease in the cost of fertilizer (an input)
#18
What happens to the equilibrium price and quantity if there is a simultaneous increase in both demand and supply?
Price increases, quantity increases
Price decreases, quantity decreases
Price increases, quantity decreases
Price decreases, quantity increases
#19
In the market for used textbooks, if students expect the price of textbooks to decrease in the future, what is the likely effect on the current market?
Increase in demand
Decrease in demand
Increase in supply
Decrease in supply
#20
If both the demand and supply of a product increase simultaneously, what will happen to the equilibrium quantity?
It will increase
It will decrease
It will remain unchanged
It depends on the magnitude of the shifts
#21
If the demand for a product is perfectly elastic, what is the elasticity coefficient?
0
1
Infinity
It cannot be determined