Theory of demand and supply

the law of demand shows the relationship between

• income and demand

• price and quantity supplied

• demand and supply

• price and quantity demanded

an increase in the price of car; ceteris peribus, will cause demand curve for petrol to

• remain unchanged

• shift to the left

• shift to the right

• become steeper

which of the following caused a movement along the curve

• decrease in consumer income

• increase in consumer satosfaction

• decrease in the price of the good

• decrease in the quantity demanded of the good

when price of good A rises, demand for B falls. what are they?

• complement goods

• substitute goods

• inferior goods

• luxury goods

law of supply states that

• the higher the income, higher quantity supplied

• higher the demand, higher the supply

• higher the price, higher the quantity supplied

• higher the price, lower the quantity supplied

supply of cars will increase if

• demand for cars decrease

• government reduces tax on car manufacturer

• price of car falls

• petroleum resources are exhausted

which of the following will not cause supply curve to shift?

• change in technology

• change in tax structure

• change in price of good

• change in factor of production

an example of complementary supply is the supply of

• leather furniture and bag

• marker and ink refills

• pens and cars

• tea and coffee

demand curve will shift to the right if price of the good increases

• false

• true

increase in demand will shift the curve to the left or right

• true

• false