The diagram shows the market for popcorn. What could explain the change in the diagram?

A decrease in the price of movie tickets

In the market shown, what will cause a price change

A change to supply or demand conditions

A good that the government believes should be consumed more

Which of the following statements is true AFTER the change in demand

Producers respond to the surplus by dropping their prices

Following the change is supply shown

There is a surplus at P1 so producers drop the price

Governments can influence the consumption of merit and demerit goods by

Susidising or taxing the goods, Making the good compulsory, Banning the good, Advertising campaigns

Which statement is true AFTER the change in demand shown.

There is a shortage at the old equilibrium price (P1)

Which of the following statements is certainly FALSE

The product has become more popular due to advertising

The diagram shows the market for firewood. What could explain the change shown

Government subsidises heat pumps to cut carbon emissions

An increase in both demand and supply of a product, will cause equilibrium price and quantity

Price uncertain, quantity increase

Which statement is true AFTER the change in demand shown.

There is an increase in quantity supplied

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The market

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#Economics #NCEA #Level 1 #market

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Questions 20

Answers

1
The '5 Plus a day' campaign is an example of
A campaign for a demerit good
A campaign for a merit good
A subsidy
A sales tax
2
The diagram shows a market following a subsidy being introduced. The amount of the subsidy is
A - B
L - B
Q1 - Q
P - P1
3
The diagram shows the market for popcorn. What could explain the change in the diagram?
A decrease in consumer incomes
A decrease in the price of potato chips
A decrease in costs of production for potato chips
A decrease in the price of movie tickets
4
On the diagram, Q2 - Q1 represents
Price floor
Price ceiling
The shortage
The surplus
5
On the diagram, Qd - Qs is a
Surplus
Shortage
Price ceiling
Price floor
6
A maximum price is also known as
A shortage
A price floor
A surplus
A price ceiling
7
In the market shown, what will cause a price change
A change to supply or demand conditions
Consumers bidding up the price to secure the product
Producers dropping the price to clear a surplus
8
What is a merit good
A good that is bad for you
A good that the government believes should be consumed more
A good that is good for you
A good that is better than achieved but not excellent
9
Which of the following statements is true AFTER the change in demand
Consumers respond to the shortage by offering a lower price
Producers respond to the surplus by dropping their prices
Producers respond to the shortage by dropping their prices
Consumers respond to the surplus by offering a higher price
10
Following the change is supply shown
There is a shortage at P1 so consumers bid up the price
There is a surplus at P1 so producers drop the price
There is a surplus at P1 so consumers bid up the price
There is a shortage at P1 so producers drop the price
11
Governments can influence the consumption of merit and demerit goods by
Susidising or taxing the goods
Making the good compulsory
Banning the good
Advertising campaigns
12
Which statement is true AFTER the change in demand shown.
There is a shortage at the new equilibrium price (P2)
There is a shortage at the old equilibrium price (P1)
There is a surplus at the new equilibrium price (P2)
There is a surplus at the old equilibrium price (P1)
13
Which of the following statements is certainly FALSE
The product has become more popular due to advertising
There has been an improvement in technology
Costs of production have decreased
There has been an improvement in productivity
14
The diagram shows the market for firewood. What could explain the change shown
The price of firewood has fallen
Government subsidises heat pumps to cut carbon emissions
A storm knocks over lots of trees
Winter is coming
15
An example of a merit good is
Education
Smart phones
Electricity
Bread
16
An increase in both demand and supply of a product, will cause equilibrium price and quantity
Price increase, quantity uncertain
Price and quantity both increase
Price uncertain, quantity increase
Price increase, quantity decrease
17
Which of the following could be a merit good subsidised by the government
A smart phone
Child care for under 5s
House cleaning for working families
A car
18
An example of a demerit good could be
Vaccinations
Coca-cola
Tobacco
Vegetables
19
On the diagram, Q2 represents
The quantity supplied
Equilibrium quantity
The quantity demanded
The quantity sold
20
Which statement is true AFTER the change in demand shown.
There is a decrease in the price
There is an increase in quantity demanded
There is an increase in quantity supplied
There is an increase in supply

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