The demand curve for a normal good will shift to the left if there is:

A decrease in the price of a substitute good

Microeconomics is concerned with

the study of individual economic behaviour

The price of freshly cut flowers goes up fast. Which of the following will happen to vases?

The demand curve for flower vases will shift to the left.

Good X is an inferior good. A rise in consumers’ income is likely to lead to:

Fall in demand and a fall in market price and quantity sold

Economics is the study of

how society decides what, how, and for whom to produce

When government taxes suppliers for goods they sell, what effect does it have on the market?

The supply curve shifts inwards

The supply of canned peaches at a given price will shift inwards when there is:

A higher price for aluminium cans

A rise in the relative price of bus transport will lead to:

An expansion of supply of new cars

A shift to the right of the market supply curve for a product can be explained by

The entry of new firms into the industry

If the supply curve for a good is positively sloped, a rise in the price of the good results in

An increase in quantity supplied

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Demand and Supply

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Revision quiz on Demand and Supply

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Questions 15

Answers

1
An increase in consumer income will increase demand for a - -- but decrease demand for an -----
substitute good, inferior good
normal good, inferior good
normal good, complementary good
inferior good, normal good
2
Which of the following would be expected to increase market demand for foreign holidays?
A fall in the value of the exchange rate
A fall in consumer confidence
A rise in consumers’ income
A rise in mortgage interest rates
3
The demand curve for a normal good will shift to the left if there is:
An increase in the supply of the good
A decrease in the price of a substitute good
A decrease in the tax imposed by government on the good
A rise in the price of the good
4
Microeconomics is concerned with
the electronics industry
the study of individual economic behaviour
the interactions within the entire economy
the economy as a whole
5
The price of freshly cut flowers goes up fast. Which of the following will happen to vases?
The price for flower vases will rise
There will be a movement along the demand curve for vases
The demand curve for flower vases will shift to the right.
The demand curve for flower vases will shift to the left.
6
Macroeconomics is the study of
individual building blocks in the economy
household purchase decisions
the relationship between different sectors of the economy
the economy as a whole
7
Good X is an inferior good. A rise in consumers’ income is likely to lead to:
Fall in demand and a fall in market price and quantity sold
Expansion of market supply following an increase in demand
Fall in demand and an increase in price and quantity sold
A rise in demand and increase in price and quantity sold
8
If a price increase of good A increases the quantity demanded of good B, then good B is a
complementary good
bargain
substitute good
inferior good
9
Economics is the study of
how society decides what, how, and for whom to produce
he best way to run society
production technology
consumption decisions
10
A tax on the producers of alcoholic lemonade (other factors remaining equal) would cause:
An inward shift of demand
An outward shift of supply
An outward shift of demand
An inward shift of supply
11
When government taxes suppliers for goods they sell, what effect does it have on the market?
The supply curve shifts outwards
The supply curve shifts inwards
The demand curve slopes upwards
The demand curve shifts outwards
12
The supply of canned peaches at a given price will shift inwards when there is:
An advertising campaign for canned peaches
An increase in the demand for milk
A higher price for aluminium cans
An increase in the demand for fresh fruit
13
A rise in the relative price of bus transport will lead to:
A fall in the demand for new cars
A fall in the demand for taxi services
An expansion of supply of new cars
An expansion of new bus routes for available customers
14
A shift to the right of the market supply curve for a product can be explained by
The entry of new firms into the industry
A rise in the popularity of the product
A government tax on producers
A rise in the cost of production
15
If the supply curve for a good is positively sloped, a rise in the price of the good results in
A rightward shift in the supply curve
A decrease in the quantity supplied
An increase in quantity supplied
A leftward shift in the supply curve

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