#1
Which of the following scenarios would likely result in an increase in demand for a product?
A decrease in the price of substitute goods
An increase in the price of complementary goods
A decrease in consumer income for normal goods
An increase in consumer preferences for the product
#2
Which of the following is a determinant of supply?
Consumer tastes and preferences
Price of related goods
Technology
Consumer income
#3
What is the concept of price elasticity of demand?
It measures the responsiveness of quantity demanded to changes in price
It measures the responsiveness of price to changes in quantity demanded
It measures the percentage change in demand for a good
It measures the percentage change in quantity supplied of a good
#4
Which of the following is an example of a substitute good?
Peanut butter and jelly
Coffee and creamer
DVDs and Blu-ray discs
Gasoline and hybrid cars
#5
What is the law of demand?
As price decreases, quantity demanded increases
As price decreases, quantity demanded decreases
As price increases, quantity demanded increases
As price increases, quantity demanded decreases
#6
What happens to equilibrium price and quantity if both demand and supply increase?
Price increases, quantity decreases
Price decreases, quantity increases
Price and quantity both increase
Price and quantity both decrease
#7
If the price of a good increases, what will happen to the quantity supplied?
It will decrease
It will increase
It will remain the same
It depends on other factors
#8
If the government imposes a price floor above the equilibrium price, what is likely to happen in the market?
Excess demand
Excess supply
Equilibrium quantity
No impact on the market
#9
Which of the following is likely to cause a shift in the demand curve?
Change in the price of the product
Change in consumer income
Change in technology used to produce the product
Change in the number of suppliers in the market
#10
What happens to equilibrium price and quantity if there is a decrease in both demand and supply?
Price increases, quantity decreases
Price decreases, quantity increases
Price and quantity both decrease
Price and quantity both increase
#11
What is the relationship between elasticity of demand and total revenue?
They are inversely related
They are directly related
There is no relationship between them
It depends on the price elasticity coefficient
#12
What is the difference between a change in quantity supplied and a change in supply?
Change in quantity supplied is caused by price change; change in supply is caused by non-price factors
Change in quantity supplied is caused by non-price factors; change in supply is caused by price change
There is no difference between them
Change in quantity supplied and change in supply are the same
#13
If a good has a perfectly elastic demand curve, what does this imply about the price elasticity coefficient?
It is greater than 1
It is less than 1
It is equal to 1
It is equal to infinity
#14
If the supply of a good is perfectly inelastic, how will a change in price affect quantity supplied?
Quantity supplied remains the same
Quantity supplied increases infinitely
Quantity supplied decreases
Quantity supplied becomes zero
#15
What is the effect of an increase in supply and a decrease in demand on equilibrium quantity?
Equilibrium quantity increases
Equilibrium quantity decreases
Equilibrium quantity remains the same
Equilibrium quantity cannot be determined