Price determination Quiz, Economics

At equilibrium price , demand is equal to supply

• False

• True

If there is shortage of a good in the market, prices will fall

• True

• False

If supply curve shifts to the right, own price must have increased

• True

• False

Supply curve has shifted to left, what could be the reason?

• Prices have decreased

• Some producers have exited from the market

With the increase in Income, demand curve of Good X has shifted to left. Good X is a :

• Normal Good

• Inferior good

If the product is a type of clothing and a famous athlete or actor advertises the product, ______ will be impacted

• Supply

• Demand

Keep It Sharp Inc., has developed a laser cutter for textile production. This has cut production time per pair of jeans from three minutes to 90 seconds. Many jeans manufacturers are using the new laser cutter. This will impact:

• Demand

• Supply

An expected increase in corn prices might cause some farmers to switch production. This impacts:

• Demand

• Supply