The more substitutes there are for a product,

the more price elastic the demand for the product is.

a good for which demand increases as income increases

The law of demand states that:

Quantity demanded increases as price decreases, CP

Which of the following will not cause a shift in the demand curve for iPhones?

A change in the price of iPhones

A shift in the demand curve could be caused by a change in any of:

income, tastes and the price of other goods

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Economics, session 1

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Questions 12

Answers

1
The more substitutes there are for a product,
the less price elastic the demand for the product is.
the greater is the income elasticity for the product.
the more price elastic the demand for the product is.
the smaller is the income elasticity for the product.
2
A normal good is:
a good for which demand decreases as income increases
a good that typifies consumer preferences
a good for which demand increases as price falls
a good for which demand increases as income increases
3
If the demand for oranges is unit elastic, the score of the price elasticity of demand is:
1
-1
0
100%
4
The law of demand states that:
Producers respond to increase in demand by producing more,CP
Demand rises as income rises, CP
Quantity demanded increases as price decreases, CP
Increase in demand causes increase in price, CP
5
Which of the following will not cause a shift in the demand curve for iPhones?
A change in the price of iPhones
A change in the price of Blackberries
A change in consumer preference for iPhones
A change in income.
6
Beef & pork are examples of products that are:
Inferior goods
Joint products
Substitutes in supply
Normal goods
7
Supply curve of coffee beans. What would be the effect of decrease in wages of coffee pickers?
Movement up along.
Rightward shift.
Movement down along
Leftward shift.
8
If the cross-price elasticity of demand between two goods is negative, the two goods are:
compliments
substitutes
inferior goods
normal goods
9
A shift in the demand curve could be caused by a change in any of:
tastes, the price of the good and the price of complements
income, tastes and the price of other goods
the price of the good, the price of substitutes and income
income, tastes and the costs of production
10
If the demand for bus travel decreases as consumer income increases, bus travel is
Complementary good
Inferior good
Normal good
Substitute good
11
When price of one good falls and this causes demand of another good to decrease, these are:
Inferior
Normal
Substitutes
Complements
12
A movement upwards/leftwards along the demand curve will be caused by:
a decrease in supply.
a fall in the price of inputs
an increase in supply.
a rise in income.

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