Supply and demand

Front

What is not held constant when constructing the supply curve of a firm?

Back

the market price of the good produced by the firm

Front

What can cause the supply curve for a product to shift to the right?

Back

an increase in government subsidies to producers

Front

What is the most likely explanation for a movement upwards along the supply curve of a product? Options: Consumer incomes have fallen, New technology has made the product cheaper to produce, The government has imposed a tax on the product, The price of a substitute has increased.

Back

The price of a substitute has increased.

Front

What situation supports the statement: ‘The world market for coffee has returned to equilibrium’?

Back

Farmers matched demand by planting more coffee bushes

Front

What is meant by equilibrium in a market?

Back

where products offered for sale equal consumer demand

Front

What is meant by the equilibrium price in the market for a good?

Back

The price at which the supply and demand curves intersect.

Front

What is most likely to increase the total output of a firm in the short run?

Back

a rise in the length of the working day

Front

Why might petrol sales increase in August when many people take their holidays?

Back

Consumers’ demand curve for petrol shifts to the right in August.

Front

Which event would not have contributed to the fall in oil prices in 2015? Options: China’s growth slowed leading to lower oil imports, Saudi Arabia increased the volume of its oil supplies, UK protest groups prevented the introduction of fracking projects, USA became more self-sufficient in oil due to fracking and reduced imports.

Back

UK protest groups prevented the introduction of fracking projects.

Front

What is least likely to lead to an increase in consumer spending on a new car? Options: a decrease in the cost of car repairs, a decrease in the price of petrol, a decrease in the rate of interest, a decrease in train fares

Back

a decrease in train fares