When the price of tortilla chips increases, the market for guacamole will experience

a decrease in demand and a decrease in price.

As a firm receives a subsidy

supply will increase illustrated as a shift to the right.

There will be upwards pressure on the market price when

there is a shortage, there is excess demand

As income increases, demand will increase and shown as

shift the demand curve to the right and increase price

The number of firms in a market increased and so

supply will increase and market price will decrease

The diagram illustrates

A fall in supply and an increase in price

Which one of the following would NOT decrease the market price?

An increase in production costs.

When there is a surplus in the market

firms decrease price and there is an extension of Qd

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Revision Market Equilibirum

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A #IB #economics Quiz testing your knowledge of how changes in #non-price #determinants of demand and supply impact #market #equilibrium

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Questions 10

Answers

1
When the price of tortilla chips increases, the market for guacamole will experience
an increase in demand and an increase in price.
an increase in demand and an increase in price.
a decrease in demand and a decrease in price.
a decrease in demand and an increase in price.
2
Which one of the following would NOT increase the market price
an increase in indirect tax
an increase in income
an increase in advertising
an increase in firms
3
As a firm receives a subsidy
supply will increase illustrated as a shift to the right.
supply will decrease illustrated as shift to the left.
supply will decrease illustrated as shift to right.
supply will increase illustrated as a shift to the left.
4
There will be upwards pressure on the market price when
there is a surplus
there is a shortage
there is excess supply
there is excess demand
5
As income increases, demand will increase and shown as
shift the demand curve to the right and decrease price
shift the demand curve to the left and decrease price
shift the demand curve to the left and increase price
shift the demand curve to the right and increase price
6
The number of firms in a market increased and so
demand will increase and market price will decrease
supply will increase and market price will increase
demand will decrease and market price will increase
supply will increase and market price will decrease
7
The diagram illustrates
A fall in supply and an increase in price
an extension of supply and an increase in price.
An increase in supply and an increase in price
a contraction of supply and an increase in price
8
A storm destroyed green houses in the Netherlands, in the market for tomatoes this will
increase demand for tomatoes
decrease supply of tomatoes
decrease demand for tomatoes
increase supply of tomatoes
9
Which one of the following would NOT decrease the market price?
An increase in the price of a complementary good
An increase in production costs.
A fall in the price of a substitute good.
A fall in indirect taxes
10
When there is a surplus in the market
firms increase price and there is a contraction of Qd
firms decrease price and there is an extension of Qd
firms increase price and there is an extension of Qd
firms decrease price and there is a contraction of Qd

Revision Market Equilibirum Flashcards | StudBud