An increase in the price of a product will reduce the amount of it purchased because:

consumers will buy cheaper products that serve the same need

If the price of K declines. What will happen to the the market for the complementary product J?

a shortage where price and quantity increase

Which of the following would not shift the demand curve for beef?

a reduction in the price of cattle feed

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Supply and Demand (Practice Questions)

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Answers

1
Which of the following will not cause the demand for product K to change?
a change in the price of K
an increase in consumer incomes
a change in consumer tastes
a change in the price of close-substitute product J
2
An effective ceiling price will
clear the market.
result in a product surplus.
result in a product shortage.
induce new firms to enter the industry.
3
Which diagrams shows the effect of decrease in incomes upon the market for secondhand clothing?
A only
A and C
B only
C only
4
An increase in the price of a product will reduce the amount of it purchased because:
consumers will buy cheaper products that serve the same need
supply curves are upsloping
consumers demand more quantity the higher the price goes
the higher price means that real incomes have risen
5
If the price of K declines. What will happen to the the market for the complementary product J?
a shortage where price increases and quantity decreases
surplus where price increases and quantity decreases
a shortage where price and quantity increase
a surplus where price and quantity decrease
6
Refer to the above diagram. A price of $20 in this market will result in:
a shortage of 50 units.
equilibrium.
a surplus of 100 units
a shortage of 100 units
7
Refer to the above diagram. The equilibrium price and quantity in this market will be:
$1.00 and 200
$1.60 and 290
$.50 and 130
$1.60 and 130
8
Which diagram shows the effect of a governmental subsidy on the market for AIDS research?
C only
A only
B only
D only
9
Which of the following would not shift the demand curve for beef?
an effective advertising campaign by pork producers
a study which indicates beef increases one's cholesterol
a change in the incomes of beef consumers
a reduction in the price of cattle feed
10
If the price of K declines, the demand curve for the complementary product J will:
remain unchanged
shift to the right
shift to the left
decrease

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