ECON 204

When more people want to buy concert tickets than the number of tickets available, this situation is called:

• Surplus

• Shortage

• Equilibrium

• Price control

If a factory can produce more products when prices go up, this is an example of:

• Law of Demand

• Law of Supply

• Price Ceiling

• Price Floor

If a hotel reduces its room price from SAR 300 to SAR 250 and sees an increase in bookings, it means:

• Supply increased

• Demand is elastic

• Demand is inelastic

• Equilibrium is reached

If a company is the only seller of a product in a city, it is called:

• Monopoly

• Oligopoly

• Perfect competition

• Cartel

When a few large companies control the mobile phone market, this is known as:

• Perfect competition

• Monopoly

• Oligopoly

• Black Market

If you are ready to pay SAR 150 for a mobile cover but you find it for SAR 100, your savings are:

• SAR 150

• SAR 100

• SAR 50

• SAR 200

A farmer sells his vegetables at a higher price than his production cost. This is called:

• Consumer surplus

• Producer surplus

• Price floor

• Price ceiling

If the price of chicken rises, what happens to the demand for beef?

• It decreases

• It stays the same

• It increases

• It disappears

When more hotels are built in a tourist city, the supply of hotel rooms will:

• Decrease

• Increase

• Stay the same

• Disappear

When the government sets a maximum price for petrol, it is called:

• Price limit

• Price ceiling

• Equilibrium

• Price floor