Question 1

Which of the following results in an increase in an increase in demand:

Accepted Answer

A) Fall in prices of substitutes 
B) Increase in price of complementary goods 
C) Fall in consumer's income 
D) None of the above 
A) Fall in prices of substitutes 
B) Increase in price of complementary goods 
C) Fall in consumer's income 
D) None of the above D

Question 2

A movement down the given demand curve shows:

Accepted Answer

A) Increase in demand 
B) Decrease in demand 
C) Extension in demand 
D) Contraction in demand 
A) Increase in demand 
B) Decrease in demand 
C) Extension in demand 
D) Contraction in demand C

Question 3

An increase in market supply, demand remaining the same causes:

Accepted Answer

A) Increase in equilibrium price 
B) Decrease in equilibrium quantity 
C) Decrease in equilibrium price and increase in equilibrium quantity 
D) Both equilibrium price and quantity rises 
A) Increase in equilibrium price 
B) Decrease in equilibrium quantity 
C) Decrease in equilibrium price and increase in equilibrium quantity 
D) Both equilibrium price and quantity rises C

Question 4

A fall in income of the consumer, other things being equal, causes:

Accepted Answer

A) Increase in demand 
B) Decrease in demand 
C) Increase in quantity demanded 
D) Decease in quantity demanded 
A) Increase in demand 
B) Decrease in demand 
C) Increase in quantity demanded 
D) Decease in quantity demanded

Question 5

Which of the following causes an increase in supply:

Accepted Answer

A) Fall in price of inputs 
B) Increase in number of producers 
C) Decrease in the price of production substitutes 
D) All of the above 
A) Fall in price of inputs 
B) Increase in number of producers 
C) Decrease in the price of production substitutes 
D) All of the above

Question 6

When demand curve is rectangular hyperbola, the value of price elasticity of demand will be:

Accepted Answer

A) Zero 
B) One 
C) Greater than one 
D) Infinity 
A) Zero 
B) One 
C) Greater than one 
D) Infinity

Question 7

An increase in supply means:

Accepted Answer

A) Movement down given supply curve 
B) Movement upward given supply curve 
C) Leftward shift in supply curve 
D) Rightward shift in supply curve 
A) Movement down given supply curve 
B) Movement upward given supply curve 
C) Leftward shift in supply curve 
D) Rightward shift in supply curve

Question 8

Which one of the following elasticities takes the average of prices and quantities:

Accepted Answer

A) Point elasticity of demand 
B) Arc elasticity of demand 
C) Income elasticity of demand 
D) Cross elasticity of demand 
A) Point elasticity of demand 
B) Arc elasticity of demand 
C) Income elasticity of demand 
D) Cross elasticity of demand

Which of the following results in an increase in an increase in demand:

A movement down the given demand curve shows:

An increase in market supply, demand remaining the same causes:

A fall in income of the consumer, other things being equal, causes:

Which of the following causes an increase in supply:

When demand curve is rectangular hyperbola, the value of price elasticity of demand will be:

An increase in supply means:

Which one of the following elasticities takes the average of prices and quantities:

Economics: Definitions, Methods, and Concepts

Economics and Social Science

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Production, Costs, and Demand Analysis

Demand Analysis and Utility Theory in Economics

Economics: Demand, Supply, and Market Equilibrium

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Exam 7: Supply and Demand Elasticity

Which of the following results in an increase in an increase in demand:

A movement down the given demand curve shows:

An increase in market supply, demand remaining the same causes:

A fall in income of the consumer, other things being equal, causes:

Which of the following causes an increase in supply:

When demand curve is rectangular hyperbola, the value of price elasticity of demand will be:

An increase in supply means:

Which one of the following elasticities takes the average of prices and quantities:

Economics: Definitions, Methods, and Concepts

Economics and Social Science

Economic Concepts and Principles in Business Operations

Production, Costs, and Demand Analysis

Demand Analysis and Utility Theory in Economics

Economics: Demand, Supply, and Market Equilibrium

Filters