#1
Which of the following is not a factor influencing demand?
Price of the product
Consumer income
Price of related goods
Cost of production
#2
Which of the following is an example of a complementary good?
Tea and coffee
Butter and margarine
Pens and pencils
Apples and oranges
#3
If the price of a substitute for a product increases, what is likely to happen to the demand for the product?
Increase
Decrease
Remain unchanged
Depends on the elasticity of demand
#4
Which of the following is a determinant of price elasticity of demand?
Number of firms in the industry
Availability of close substitutes
Price of the product
Consumer income
#5
If the price of a product increases and its demand decreases, the demand for its complementary goods will:
Increase
Decrease
Remain unchanged
Depends on the income elasticity of demand
#6
Which of the following is not a determinant of price elasticity of demand?
Availability of substitutes
Necessity of the good
Time period
Income of consumers
#7
What effect would a decrease in the price of smartphones have on the demand for mobile phone cases?
Increase in demand
Decrease in demand
No effect on demand
Depends on the income of consumers
#8
Which of the following is a factor that can shift the demand curve?
Changes in technology
Changes in the price of the product
Changes in the cost of production
Changes in consumer preferences
#9
In the long run, the price elasticity of supply for a product tends to be:
Less elastic than in the short run
More elastic than in the short run
Equal to the short-run elasticity
Depends on the nature of the product
#10
If demand for a product is inelastic and the price increases, what will happen to total revenue?
Increase
Decrease
Remain unchanged
Depends on the price elasticity of supply
#11
A perfectly elastic demand curve is:
Vertical
Horizontal
Upward sloping
Downward sloping
#12
If the price elasticity of demand for a good is -0.5, the demand is considered to be:
Elastic
Inelastic
Unitary elastic
Perfectly elastic
#13
If the demand for a product is unitary elastic, what is the value of its price elasticity of demand?
0
1
Greater than 1
Less than 1
#14
What is the likely impact on the demand for luxury cars during an economic recession?
Increase in demand
Decrease in demand
No significant change in demand
Depends on government policies