C2 : SET 4 - DEMAND AND SUPPLY THEORY

Movement along the demand curve for high rise apartments will be caused by a change in ______________.

• price of the single-story link houses.

• consumer’s income.

• consumer’s taste and preference.

• price of the high rise apartments.

Which of the following is NOT a determinant of demand for diesel?

• The price of petrol

• The price of diesel

• The price of automobile

• Consumer’s income

Sugar and honey are viewed as substitute for each other in many cooking applications. If the price of sugar rises, we would expect _________________.

• the demand for honey to increase

• the quantity demanded of honey to increase

• the demand for honey to decrease

• the quantity demanded of honey to decrease

As the price of egg increases, Sophie’s production of cakes will _______________.

• Increase the supply of cakes

• Increase the quantity supplied of cakes

• Decrease the supply of cakes

• Decrease the quantity supplied of cakes

The law of supply indicates that __________________.

• decrease the supply of a good when its price fall.

• increase the supply of a good when its price rises.

• increases the quantity supplied of a good when its price rises.

• decreases the quantity supplied of a good when input prices fall.

All of the following are held to be constant when the supply curve for a product is drawn, EXCEPT __________________.

• the price of the product.

• the state of the technology.

• the number of the producers.

• the price of inputs used to make the product.

Which of the following could not cause an increase in the supply of wheat?

• A decrease in the price of wheat.

• A decrease in the price of corn.

• A decrease in the price of machinery and equipment used in wheat farming.

• Improvements in the techniques of growing wheat.

The definition of demand in an economic perspective is ________________.

• the desire to purchase goods and services at a certain price.

• the desire of all individuals in a market to purchase goods.

• the desire of an individual to obtain goods and services, supported by the ability to pay a certain price.

• he ability of an individual to spend his/her income to purchase goods and services.

The law of demand shows the relationship between __________________.

• consumer’s income and demand.

• population and demand.

• demand and supply.

• price and quantity demand.

Assuming other factors do not change, an increase in the price of pen will cause the demand curve for ink to __________________.

• remain unchanged.

• shift to the left.

• shift to the right

• become steeper.