Economics Quiz

If the price of coffee increases, what is likely to happen to the demand for tea (a substitute)?

• Increase

• Decrease

• Remain unchanged

• Fluctuate randomly

What happens to the equilibrium price when there's an increase in demand but supply remains constant?

• Increases

• Decreases

• Stays the same

• Becomes unpredictable

If the price of crude oil rises significantly, what is the immediate effect on petrol prices?

• Price decreases

• Price remains stable

• Price increases

• No effect

When the price of bread increases, what happens to the demand for butter ?

• Increases

• Decreases

• Stays the same

• Increases initially, then stabilizes

Which of the following would likely cause a shift in the supply curve for wheat?

• Increase in consumer income

• Introduction of advanced harvesting technology

• Change in consumer preference for rice

• Increase in advertising

What happens to the equilibrium quantity when both demand and supply increase simultaneously?

• Increases

• Decreases

• Remains unchanged

• Cannot be determined without additional information

A sudden drought reduces crop production. What happens to the equilibrium price of fruits?

• Increases

• Decreases

• Remains unchanged

• Fluctuates unpredictably

What happens to the demand for air conditioners when there's a sudden heatwave?

• Increases

• Decreases

• Remains constant

• Becomes volatile

Which of the following is a likely result of excess supply in the market?

• Prices will rise

• Prices will fall

• Demand will decrease

• Demand will increase

A major smartphone company launches a new model. What happens to the demand for its previous model?

• Increases

• Decreases

• Remains constant

• Becomes unpredictable