For most goods, a general increase in wage levels would see?

Decreased supply and increased demand.

What happens if there is a surplus of goods in a market?

Supply contracts, demand expands, price falls

Which of the following would not increase supply?

An increase in the price received by producers.

The impact of a successful advertising campaign on a market would see?

The demand curve moves right and supply extends.

After a price reduction a seller experiences a fall in total revenue.

The good is relatively inelastic at this price range.

Demand for good X is price inelastic. This could be due to:

Spending on good X involves a very small part of income.

A floor price results in ...?

A surplus and the government buying excess production.

In a banana market, what impact would a cyclone striking a banana producing area be?

A contraction in demand as the supply shifts to the left.

Equilibrium price must fall if?

Demand increases and supply decreases.

If a government imposes a ceiling price in a market, the most likely impacts could be?

A shortage and a need to ration the good.

Which of the following is false?

A supply curve will shift right if production costs ↑.

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Markets

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An economics quiz on demand, supply and market equilibrium. Year 11 NSW HSC Preliminary course.

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Questions 16

Answers

1
For most goods, a general increase in wage levels would see?
Increased supply and increased demand.
Decreased supply and increased demand.
Increased supply and decreased demand.
Decreased supply and decreased demand.
2
What happens if there is a surplus of goods in a market?
Supply contracts, demand expands, price falls
Supply expands, demand contracts, price rises
Supply contracts, demand contracts, price falls
Supply expands, demand contracts, price falls
3
Which of the following would not increase supply?
More favourable producer expectations.
More efficient use of resources.
An increase in the price received by producers.
An increase in the number of producers.
4
What happens to equilibrium price and quantity if there is a decrease in supply?
Price ↓ and Quantity ↓
Price ↑ and Quantity ↑
Price ↑ and Quantity ↓
Price↓ and Quantity ↑
5
A market structure with many sellers of slightly differentiated products?
Monopolistic competition
Perfect competition
Oligopoly
Monopoly
6
The impact of a successful advertising campaign on a market would see?
The demand curve moves right and supply extends.
Demand and supply curves move to the right.
The demand curve moves right and supply contracts.
The demand curve moves right and the supply curve left.
7
After a price reduction a seller experiences a fall in total revenue.
The good is relatively inelastic at this price range.
The good has unitary PED at this price range.
The good is a necessity.
The good is relatively elastic at this price range.
8
Which of the following is not regarded as a determinant of supply?
Buyers' incomes
Producers' expectations
Factor prices
Technology
9
An oligopoly is characterised by few?
Economies of scale
Buyers
Barriers to entry
Sellers
10
Demand for good X is price inelastic. This could be due to:
Spending on good X involves a very small part of income.
All of the above.
Good X has many close substitutes.
Good X is a luxury good.
11
A floor price results in ...?
A surplus and the government buying excess production.
A shortage and a need to ration.
A surplus and a need to subsidise production.
A shortage and a price increase.
12
In a banana market, what impact would a cyclone striking a banana producing area be?
An expansion in demand as the supply moves to the left.
A contraction in demand as the supply curve shifts left.
A contraction in demand as the supply shifts to the left.
Demand shifts to the left and supply curve shifts right.
13
Equilibrium price must fall if?
Demand decreases and supply increases.
Demand and supply both increase.
Demand increases and supply decreases.
Demand and supply both decrease.
14
If a government imposes a ceiling price in a market, the most likely impacts could be?
A surplus and a need to subsidise producers.
A shortage and a need to ration the good.
A shortage and a need to tax producers
A surplus and a need to buy up excess production.
15
Which of the following is false?
A contraction of supply would result from a price fall.
An increase in demand results in a new higher equilibrium.
A supply curve will shift right if production costs ↑.
PED is elastic if total revenue rises after a price fall.
16
The price of a good rises from $2 to $2.20 and quantiy demanded falls by 50 to 400.
Demand is relatively elastic.
Elasticity can be calculated from data provided.
Demand has unitary elasticity at this price range.
Demand is relatively inelastic.

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