Demand and Supply

Changes in income are most likely to affect the demand for which type of good?

• Substitute goods

• Normal goods

• Complementary goods

When there's a decrease in the price of a smartphone, we would expect (according to the law of demand):

• Consumers to buy more smartphones

• Consumers to buy fewer smartphones

• No change in smartphone purchases

You notice that the price of oranges has significantly increased, while the quantity of oranges sold has decreased. This could best be explained by:

• A shift in the demand curve for oranges to the right

• A shift in the demand curve for oranges to the left

• A shift in the supply curve for oranges to the left

When the quantity demanded equals the quantity supplied in a market, this point is known as:

• Equilibrium

• Surplus

• Shortage

The interaction between buyers and sellers to exchange goods or services is known as:

• Elasticity

• A market

• Equilibrium

The responsiveness of quantity demanded to a change in price is measured by:

• Cross-price elasticity of demand

• Price elasticity of demand

• Income elasticity of demand

"An excess quantity of the product exists at the current price." This describes a situation of:

• Equilibrium

• Surplus

• Shortage

A new government tax is placed on coffee production. How does this likely affect the supply of coffee?

• The supply of coffee will decrease

• The supply of coffee will increase

• The supply of coffee will remain the same

A major technology upgrade makes production of solar panels more efficient. How will this likely affect the supply of solar panels?

• Supply will decrease

• Supply will increase

• Supply will stay the same

If the price of a product increases, what can we expect will happen to the quantity supplied, according to the law of supply?

• The quantity supplied will stay the same.

• The quantity supplied will increase.

• The quantity supplied will decrease.