When the demand for a good increases

both the price and quantity traded will increase

Unit elasticity means:

Q demanded changes at the same rate as the change in P

Which of the following is most likely to cause a demand curve to shift to the right?

a rise in general income levels

When the supply of a good decreases and the supply curve shifts to the left...

P will increase but Q will decrease

An increase in the wages paid to teachers would result in...

An increase in demand for whiteboard markers

The equilibrium price is:

the price where Q demanded is the same as Q supplied.

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Econ U3 - Demand, Supply & Elasticity

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Questions 10

Answers

1
Which of the following would have the highest price elasticity of supply?
A painting by Van Gogh
An apricot
A truck
A CD
2
When the demand for a good increases
both the price and quantity traded will decrease
the price will decrease but the quantity will increase
the price will increase but the quantity will decrease
both the price and quantity traded will increase
3
The demand for which good is likely to be relatively price inelastic?
Elective surgery
Milk
Overseas holidays
Plasma televisions
4
Unit elasticity means:
a change in price leads to a change in demand
demand doesn’t change when prices change
Q demanded changes at the same rate as the change in P
P changes at the same rate as the change in Q demanded
5
Which of the following is most likely to cause a demand curve to shift to the right?
a rise in the price of a complementary good
a rise in the price of the good
a rise in the costs of production
a rise in general income levels
6
When the supply of a good decreases and the supply curve shifts to the left...
P will increase but Q will decrease
both P and Q will increase
both P and Q will decrease
P will decrease but Q will increase
7
An increase in the wages paid to teachers would result in...
A decrease in the number of students studying Maths
An increase in demand for whiteboard markers
An increase in the cost of education across all sectors.
An increase in number of students attending private schools
8
The equilibrium price is:
the point where consumers maximise their demand
the process of prices changing from changes in D and S
the price where Q demanded is the same as Q supplied.
the point where firms maximise their supply
9
Changes in which of the following variables would not shift the demand curve?
The price of the good itself
Income
Price of other goods
Population size
10
The demand for which good is likely to be relatively price elastic?
Prescription medicine
Bread and milk
Petrol
Luxury cars

Econ U3 - Demand, Supply & Elasticity Flashcards | StudBud