Question 1

If the demand for a product increases when the price falls the demand curve would be ___________ sloping.

Accepted Answer

downward

Question 2

What does a demand curve show?

Accepted Answer

A)  What people are willing and able to buy at each income, all other things unchanged. 
B)  What people are willing and able to buy at each and every price, all other things unchanged. 
C)  What people like, all other things unchanged. 
D)  What people can afford, all other things unchanged. 
A)  What people are willing and able to buy at each income, all other things unchanged. 
B)  What people are willing and able to buy at each and every price, all other things unchanged. 
C)  What people like, all other things unchanged. 
D)  What people can afford, all other things unchanged. B

Question 3

When might a demand curve for a normal good shift outwards?

Accepted Answer

A)  When the price of the product falls. 
B)  When income falls. 
C)  When the price of a complement falls. 
D)  When supply increases. 
A)  When the price of the product falls. 
B)  When income falls. 
C)  When the price of a complement falls. 
D)  When supply increases. C

Question 4

If the demand for a product increases when the price of another one rises they are known as ___________.

Accepted Answer

The answer of If the demand for a product increases...

Question 5

A shift in the demand curve may occur for all of the following except a change in

Accepted Answer

A)  price 
B)  income 
C)  The price of complements 
D)  The price of substitutes 
A)  price 
B)  income 
C)  The price of complements 
D)  The price of substitutes

Question 6

What can cause a change in quantity demanded?

Accepted Answer

A)  A change in income. 
B)  A change in price. 
C)  A change in advertising. 
D)  A change in the number of buyers. 
A)  A change in income. 
B)  A change in price. 
C)  A change in advertising. 
D)  A change in the number of buyers.

Question 7

What does it tell you if the cross price elasticity of demand between two products is +2?

Accepted Answer

A)  The products are substitutes and a price increase in one by 3% decreases demand for the other by 1.5%. 
B)  The products are complements and a price increase in one by 3% decreases demand for the other by 1.5%. 
C)  The products are complements and a price increase in one by 3% decreases demand for the other by 6%. 
D)  The products are substitutes and a price increase in one by 3% increases demand for the other by 6%. 
A)  The products are substitutes and a price increase in one by 3% decreases demand for the other by 1.5%. 
B)  The products are complements and a price increase in one by 3% decreases demand for the other by 1.5%. 
C)  The products are complements and a price increase in one by 3% decreases demand for the other by 6%. 
D)  The products are substitutes and a price increase in one by 3% increases demand for the other by 6%.

Question 8

What does it tell you if the income elasticity for your product is -0.5?

Accepted Answer

A)  The product is inferior and an increase in income by 10% reduces demand by 5%. 
B)  The product is inferior and an increase in income by 10% increases demand by 50%. 
C)  The product is normal and an increase in income by 10% reduces demand by 5%. 
D)  The product is normal and an increase in income by 10% increases demand by 50%. 
A)  The product is inferior and an increase in income by 10% reduces demand by 5%. 
B)  The product is inferior and an increase in income by 10% increases demand by 50%. 
C)  The product is normal and an increase in income by 10% reduces demand by 5%. 
D)  The product is normal and an increase in income by 10% increases demand by 50%.

Question 9

What does it tell you if demand is price inelastic?

Accepted Answer

A)  The change in quantity demanded is less than the price change in percentages. 
B)  Demand does not change when price changes. 
C)  Revenue falls when price increases. 
D)  There are many producers. 
A)  The change in quantity demanded is less than the price change in percentages. 
B)  Demand does not change when price changes. 
C)  Revenue falls when price increases. 
D)  There are many producers.

Question 10

Demand measures the quantity customers are willing and ______ to purchase

Accepted Answer

The answer of Demand measures the quantity customers are willing...

Question 11

An increase in costs mean the demand curve will shifts.

Accepted Answer

A) True 
 B)False

Question 12

An increase in demand is shown by a movement along the demand curve.

Accepted Answer

A) True 
 B)False

Question 13

What does it tell you if demand is price elastic?

Accepted Answer

A)  A price decrease increases revenue. 
B)  The percentage change in quantity demand is less than the change in price. 
C)  The value of price elasticity is less than 1. 
D)  There are likely to be few substitutes. 
A)  A price decrease increases revenue. 
B)  The percentage change in quantity demand is less than the change in price. 
C)  The value of price elasticity is less than 1. 
D)  There are likely to be few substitutes.

Question 14

A fall in price leads to an outward shift in a demand curve

Accepted Answer

A) True 
 B)False

Question 15

The price elasticity of demand measures whether demand increases or decreases when the price falls

Accepted Answer

A) True 
 B)False

Question 16

When demand is price inelastic, a price increase will also increase total revenue.

Accepted Answer

A) True 
 B)False

Question 17

A combination of high price and high product benefits is called a differentiation strategy by Bowman

Accepted Answer

A) True 
 B)False

Question 18

Complete the sentence. The demand curve will shift inwards if…

Accepted Answer

A)  Supply falls. 
B)  The good is inferior and income rises. 
C)  The price rises. 
D)  The good is normal and an income increases. 
A)  Supply falls. 
B)  The good is inferior and income rises. 
C)  The price rises. 
D)  The good is normal and an income increases.

If the demand for a product increases when the price falls the demand curve would be ___________ sloping.

What does a demand curve show?

When might a demand curve for a normal good shift outwards?

If the demand for a product increases when the price of another one rises they are known as ___________.

A shift in the demand curve may occur for all of the following except a change in

What can cause a change in quantity demanded?

What does it tell you if the cross price elasticity of demand between two products is +2?

What does it tell you if the income elasticity for your product is -0.5?

What does it tell you if demand is price inelastic?

Demand measures the quantity customers are willing and ______ to purchase

An increase in costs mean the demand curve will shifts.

An increase in demand is shown by a movement along the demand curve.

What does it tell you if demand is price elastic?

A fall in price leads to an outward shift in a demand curve

The price elasticity of demand measures whether demand increases or decreases when the price falls

When demand is price inelastic, a price increase will also increase total revenue.

A combination of high price and high product benefits is called a differentiation strategy by Bowman

Complete the sentence. The demand curve will shift inwards if…

What Is a Business?

Mission and Objectives

Managing Costs

How Markets Work

Labour Market

Do Markets Work

Different Market Forms

Strategic Planning and the Economy

Strategies for Growth

Analysing the Macroeconomic Environment

Government Macroeconomic Policy and Business

Global Business

Filters

Exam 3: Managing Demand

If the demand for a product increases when the price falls the demand curve would be ___________ sloping.

What does a demand curve show?

When might a demand curve for a normal good shift outwards?

If the demand for a product increases when the price of another one rises they are known as ___________.

A shift in the demand curve may occur for all of the following except a change in

What can cause a change in quantity demanded?

What does it tell you if the cross price elasticity of demand between two products is +2?

What does it tell you if the income elasticity for your product is -0.5?

What does it tell you if demand is price inelastic?

Demand measures the quantity customers are willing and ______ to purchase

An increase in costs mean the demand curve will shifts.

An increase in demand is shown by a movement along the demand curve.

What does it tell you if demand is price elastic?

A fall in price leads to an outward shift in a demand curve

The price elasticity of demand measures whether demand increases or decreases when the price falls

When demand is price inelastic, a price increase will also increase total revenue.

A combination of high price and high product benefits is called a differentiation strategy by Bowman

Complete the sentence. The demand curve will shift inwards if…

What Is a Business?

Mission and Objectives

Managing Costs

How Markets Work

Labour Market

Do Markets Work

Different Market Forms

Strategic Planning and the Economy

Strategies for Growth

Analysing the Macroeconomic Environment

Government Macroeconomic Policy and Business

Global Business

Filters