An increase in the price of a complement good (good A) would cause

An increase in demand of Good B

Technical efficiency is

when output is maximised and costs minimised

A decrease in income tax will impact normal goods by

increasing disposable income, shifting demand curve right

An increase in demand (ceteris paribus) will cause

a shortage in supply and an increase in prices, an excess in demand and an increase in prices

A shift in the demand curve means which of the following?

A change in demand at every price

A drop in the price of product A, will lead to ...

a decrease in the quantity supplied of A

A perfectly competitive market has three conditions:

lots of buyers & sellers, homogenous goods, Ease of entry & exit

A place where buyers and sellers transact business

Market equilibrium occurs when:

quantity demanded equals quantity supplied

Demand is downward sloping due to :

the income and substitute effect

An increase in interest rates will.....

lower discretionary income and shift the demand curve left

An increase in supply (ceteris paribus) will cause

an excess of supply and a decrease in prices

a decrease in supply (ceteris paribus) will cause.....

an shortage of supply and increase in prices

a decrease in demand (ceteris paribus) will cause

an excess in supply and a decrease in prices

Allocative efficiency is

When society's wellbeing is maximised.

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Supply & demand

32 termsStudBud Administration59 plays

#economics

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Questions 32

Answers

1
An increase in the price of a complement good (good A) would cause
An increase in Supply of Good B
An increase in demand of Good B
A decrease in demand of Good B
A Decrease in Supply of Good B
2
If the market price is above the equilibrium, what does that mean?
The market price is equal to the equilibrium
There is an excess demand
None of the above
There is an excess supply
3
this image demonstrates a....
decrease in demand
increase in demand
increase in supply
decrease in supply
4
Technical efficiency is
When society's wellbeing is maximised.
When resources are balanced between time periods
how quickly we are able to reallocated resources.
when output is maximised and costs minimised
5
this image demonstrates a ....
increase in demand
increase in supply
decrease in supply
decrease in demand
6
A decrease in income tax will impact normal goods by
decreasing disposable income, shifting demand curve right
increasing disposable income, shifting demand curve right
increasing discretionary income, shifting demand curve right
decreasing discretionary income, shifting demand curve right
7
An increase in disposable income would cause what to shift?
No Shift
Supply
Demand
8
An increase in demand (ceteris paribus) will cause
a shortage in supply and an increase in prices
a shortage in supply and a decrease in prices
an excess in demand and a decrease in prices
an excess in demand and an increase in prices
9
A shift in the demand curve means which of the following?
A change in demand at every price
A change in consumer income
A rise in prices
A decrease in both price and quantity demanded
10
a negative demand factor would cause the demand curve to shift
Left
right
11
A drop in the price of product A, will lead to ...
a decrease in the quantity supplied of A
a decrease in the demand for product A
a decrease in the supply of A
an increase in the quantity supplied of A
12
A perfectly competitive market has three conditions:
lots of buyers & sellers, homogenous goods, Ease of entry & exit
Full information, differentiated goods, Ease of entry
Full information, mobile goods, sellers maximise profit
Firms are price makers, differentiated goods, ease of entry
13
The equilibrium price and quantity would be...
P = $5, Q= 4
P= $5, Q=5
P= $6, Q= 5
P=$5, Q=6
14
A negative supply factor would cause the supply curve to shift
right
left
15
The law of supply states that as the price of a good rises, the quantity supplied of that good.
decrease
give more benefit
give less benefit
increase
16
What is a market?
A place where they analyse graphs
All of the above
A place where buyers and sellers transact business
A study of equilibrium
17
Change in price causes a _________ ______ the supply curve and a change in quantity supplied.
movement along
shift of
18
A movement along the curve is caused by ___________ whereas a shift is caused by ______________
Price, non price factors
non price factors, price
an increase in demand, decrease in demand
19
If the market price is below the equilibrium, what does that mean?
There is an excess supply
There is an excess demand
None of the above
The market price is equal to the equilibrium
20
What would cause the supply curve to shift to the right?
All of the above
Decrease in the price of oil
A technological advancement
Increase in the exchange rate
21
Market equilibrium occurs when:
the market closes
all of the above
there is incentive for prices to change
quantity demanded equals quantity supplied
22
Demand is downward sloping due to :
the income and substitute effect
The substitute and complement effect
Inferior and normal goods
The number of consumers
23
An increase in interest rates will.....
lower discretionary income, shift the demand curve right
lower discretionary income and shift the demand curve left
lower disposable income and shift the demand curve left
lower disposable income and shift the demand curve right
24
An increase in supply (ceteris paribus) will cause
an excess in demand and an increase in prices
an excess of supply and a decrease in prices
a shortage of demand and an increase in prices
an excess in supply and an increase in prices.
25
a decrease in supply (ceteris paribus) will cause.....
an excess in demand and a decrease in prices
an shortage of supply and increase in prices
a shortage of supply and an decrease in prices
a shortage of demand and an increase in prices
26
a decrease in demand (ceteris paribus) will cause
a shortage of supply and a decrease in prices.
an excess in supply and an increase in prices
a shortage of supply and an increase in prices
an excess in supply and a decrease in prices
27
The law of demand states that as the price increases
Demand decreases
Quantity demanded increases
Demand increases
Quantity demanded decreases
28
this image demonstrates a.....
decrease in demand
decrease in supply
increase in demand
increase in supply
29
this image demonstrates a.....
decrease in demand
increase in supply
increase in demand
decrease in supply
30
Which of the following would most likely result in an increase in the demand for coffee?
The wage of coffee plantation workers falls.
The price of tea rises.
The price of coffee brewing machines rises.
Consumer income falls.
31
Allocative efficiency is
When society's wellbeing is maximised.
how quickly we are able to reallocated resources.
When resources are balanced between time periods
when output is maximised and costs minimised
32
A positive supply factor would cause the supply curve to shift
right
left

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