#1
Which of the following factors would NOT cause a shift in the demand curve?
Change in consumer preferences
Change in the price of a complementary good
Change in the price of the good itself
Change in the cost of production
Change in income levels
#2
What effect does an increase in the price of butter have on the supply curve for margarine?
Shifts the supply curve for margarine to the left
Shifts the supply curve for margarine to the right
Causes movement along the supply curve for margarine
Has no effect on the supply curve for margarine
#3
What is the law of demand?
As the price of a good increases, the quantity demanded decreases
As the price of a good increases, the quantity demanded increases
As the price of a good decreases, the quantity demanded decreases
As the price of a good decreases, the quantity demanded increases
#4
Which of the following would cause a movement along the demand curve?
Change in consumer income
Change in the price of the good
Change in consumer preferences
Change in the price of a substitute good
#5
Which of the following is NOT a determinant of demand?
Consumer income
Price of the good
Price of related goods
Technology
#6
What is the likely effect on the demand for umbrellas during a rainy season?
Increase in demand
Decrease in demand
No change in demand
Demand becomes perfectly elastic
#7
Which of the following is a determinant of supply?
Consumer preferences
Taxes
Number of buyers
Income
#8
What happens to the equilibrium price and quantity of oranges if both the demand and supply increase?
Price increases, quantity decreases
Price decreases, quantity increases
Price and quantity both increase
Price and quantity both decrease
#9
What effect would an improvement in technology have on the supply curve?
Shift the supply curve to the left
Shift the supply curve to the right
Cause movement along the supply curve
No effect on the supply curve
#10
If the price of coffee increases, what happens to the demand for tea (a substitute good)?
Demand for tea increases
Demand for tea decreases
No change in demand for tea
Demand for tea becomes perfectly elastic
#11
Which of the following is a factor that could shift the supply curve to the right?
Increase in production costs
Decrease in taxes on producers
Decrease in consumer income
Increase in price of substitutes
#12
If both the demand and supply increase but the increase in demand is relatively greater, what will happen to the equilibrium price and quantity?
Price increases, quantity increases
Price decreases, quantity increases
Price increases, quantity decreases
Price decreases, quantity decreases
#13
Which of the following is an example of a non-price determinant of demand?
Income
Price of the good
Price of a related good
Number of producers
#14
What is the likely effect of a decrease in the price of gasoline on the demand for electric cars?
Increase in demand for electric cars
Decrease in demand for electric cars
No change in demand for electric cars
Decrease in supply of electric cars
#15
In which market structure does a single firm control the entire market?
Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#16
What is a characteristic of monopolistic competition?
A large number of firms
Homogeneous products
Price takers
Barriers to entry