Q. When the quantity demanded of a goods is equal to the quantity supplied of that goods, then ___________. There is a surplus The government is intervening in the market There is a shortage None of the above Answer: None of the above
Q. An increase in the number of restaurants serving fast-food leads to _______. Growth in the demand of fast-food meals Increase in the supply of fast-food meals Increase in the price of fast-food meals Growth in the demand for substitutes of fast-food meals Answer: Increase in the supply of fast-food meals
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Q. Which of the following metrics is not a constant factor while moving upwards along the supply curve? The price of the commodity The number of sellers Expected future prices Cost of the resources used for producing that commodity Answer: The price of the commodity
Q. Because of increasing marginal costs, most supply curves ________. Have a positive slope Have a negative slope Are horizontal Are vertical Answer: Have a positive slope
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Q. If the income of a consumer increases or the price of a complementary good falls, then the __________. The demand curve for the product shifts rightward The demand curve for the product shifts leftward The supply curve for the product shifts rightward The supply curve for the product shifts leftward Answer: The demand curve
Q. If price changes by 1% and supply changes by 2%, then the supply is ______. Static Indeterminate Inelastic Elastic Answer: Elastic
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Q. ______ leads to an increase in the supply of a commodity without a change in its price. Rise in supply Contraction in supply Expansion in supply Fall in supply Answer: Rise in supply
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Q. Which of the following scenarios will not lead to a change in demand for a product? A change in the tastes of its consumers A change in the price of that product An increase in the income of its consumers None of the above Answer: None of the above
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Q. A firm’s supply curve is on an upward slope because ______. The production costs of additional units of output will rise beyond a point Consumers see a positive relationship between price and quality Expansion of production leads to the use of inferior inputs None of the above Answer: The production costs of additional units
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Q. Which of the following scenarios will not shift the demand curve for a particular product? A change in the income of the consumers of that product Effective advertising campaign by producers of a substitute good A reduction in the price of the raw material for that product A widely publicised study that says the
