#1
Which of the following factors will NOT cause a shift in the demand curve for smartphones?
An increase in the price of smartphones
A decrease in the price of tablets (a substitute for smartphones)
A change in consumer preferences towards using smartphones
A decrease in the price of smartphone accessories (complementary goods)
#2
What is the law of demand?
As the price of a good increases, the quantity demanded decreases, ceteris paribus.
As the price of a good decreases, the quantity demanded decreases, ceteris paribus.
As the price of a good increases, the quantity demanded increases, ceteris paribus.
As the price of a good increases, the demand curve shifts to the right.
#3
What is the relationship between price and quantity demanded on the demand curve?
Inversely proportional
Directly proportional
Unrelated
Random
#4
What is the law of supply?
As the price of a good increases, the quantity supplied decreases, ceteris paribus.
As the price of a good decreases, the quantity supplied decreases, ceteris paribus.
As the price of a good increases, the quantity supplied increases, ceteris paribus.
As the price of a good increases, the supply curve shifts to the right.
#5
What is the relationship between price and quantity supplied on the supply curve?
Inversely proportional
Directly proportional
Unrelated
Random
#6
What would cause a movement along the demand curve for coffee?
A change in the price of tea, a substitute for coffee
A change in consumer income
A change in consumer preferences towards coffee
A change in the price of coffee
#7
What does a price ceiling set below the equilibrium price result in?
A surplus of the good
A shortage of the good
An increase in equilibrium quantity
A decrease in consumer surplus
#8
What is the income elasticity of demand for a normal good?
Positive
Negative
Zero
Indeterminate
#9
If the cross-price elasticity of demand for two goods is negative, what can we infer about their relationship?
They are substitutes
They are complements
There is no relationship
They are normal goods
#10
What effect does an increase in consumer income have on the demand for inferior goods?
Increase in demand
Decrease in demand
No effect on demand
Indeterminate effect
#11
Which of the following would cause a shift to the right in the supply curve for smartphones?
A decrease in the cost of production for smartphones
A decrease in the price of smartphones
An increase in the price of smartphones
A decrease in the number of firms producing smartphones
#12
Which of the following would NOT shift the supply curve for wheat?
An improvement in wheat production technology
An increase in the price of wheat
A decrease in subsidies for wheat farmers
A rise in the price of fertilizer, a key input in wheat production
#13
What is the main determinant of elasticity of supply?
The number of suppliers in the market
The time horizon considered
The price of the good
The income level of consumers
#14
What happens to the equilibrium price and quantity of oranges if both demand and supply increase?
Price increases, quantity decreases
Price decreases, quantity increases
Price decreases, quantity remains unchanged
Price and quantity both increase
#15
If the government imposes a tax on sellers of a good, what happens to the equilibrium price and quantity?
Price increases, quantity increases
Price increases, quantity decreases
Price decreases, quantity increases
Price decreases, quantity decreases
#16
What does the price elasticity of demand measure?
The responsiveness of quantity demanded to changes in price
The change in quantity demanded divided by the change in income
The percentage change in quantity demanded divided by the percentage change in price
The change in quantity demanded divided by the change in price
#17
What happens to the equilibrium price and quantity when both demand and supply decrease?
Price decreases, quantity increases
Price increases, quantity decreases
Price remains unchanged, quantity decreases
Price and quantity both decrease