Price Mechanism 1

Price of a good increases will result in

• demand falls

• supply rises

• quantity demanded falls

• quantity demanded rises

• quantity supplied rises

When demand of a good increases,

• equilibrium price will fall

• equilibrium price will rise

• equilibrium quantity will fall

• equilibrium quantity will rise

What happens to the market of Coke, when price of Pepsi increases?

• Quantity demanded of Coke rises

• Quantity demanded of Coke falls

• Demand for Coke rises

• Supply for Coke rises

When both demand and supply decreases, which one is NOT a possible outcome?

• Equilibrium quantity falls

• Equilibrium quantity rises

• Equilibrium price falls

• Equilibrium price rises

Which one of the following does NOT affect the demand of a good?

• GST levied on the sales of the good

• Change in taste and preference for the good

• Rise in household income

• Expectation of a future price increase for the good

Supply of a good increases will result in

• Fall in equilibrium price and Fall in equilibrium quantity

• Fall in equilibrium price and Rise in equilibrium quantity

• Rise in equilibrium price and Fall in equilibrium quantity

• Rise in equilibrium price and Rise in equilibrium quantity

When demand increases and supply decreases simultaneously,

• equilibrium price will rise while equilibrium quantity is uncertain

• equilibrium price will fall while equilibrium quantity is uncertain

• equilibrium quantity will rise while equilibrium price is uncertain

• equilibrium quantity will fall while equilibrium price is uncertain

Total revenue of a good may increase when

• Demand of the good increases, ceteris paribus

• Demand of the good decreases, ceteris paribus

• Supply of the good increases, ceteris paribus

• Supply of the good decreases, ceteris paribus

Which of the following scenario will NEVER result in an increase in the equilibrium price of a good?

• Fall in Demand and Fall in Supply

• Fall in Demand and Rise in Supply

• Rise in Demand and Rise in Supply

• Rise in Demand and Fall in Supply