Grade 12 Economics MCQs

The demand for apples increases due to a new health trend, while a storm destroys part of the apple crop. What will happen to the equilibrium price and quantity?

• Price increases, quantity increases

• Price increases, quantity is indeterminate

• Price decreases, quantity decreases

• Price decreases, quantity increases

• Price is indeterminate, quantity increases

If the demand and supply curves for laptops are: Qd = 140 − 5P Qs = 20 + 4P Where P is the price of laptops, what is the equilibrium quantity?

• 30

• 40

• 60

• 80

• 100

Assume the supply of coffee decreases due to higher production costs while demand increases due to changing consumer tastes. What will happen to the new equilibrium price and quantity?

• Increase, Increase

• Increase, Indeterminate

• Decrease, Decrease

• Decrease, Increase

• Indeterminate, Increase

What would happen to the market for bananas if a new medical study claims bananas improve memory and wages rise for banana farm workers? Demand | Supply | Price | Quantity

• Increase | Increase | Increase | Increase

• Decrease | Increase | Decrease | Indeterminate

• Increase | Decrease | Increase | Indeterminate

• Decrease | Increase | Indeterminate | Increase

• Increase | Decrease | Increase | Increase

The price of good X rises. As a result, the demand for good Y falls. What can we infer?

• Good X is used to produce good Y

• Good Y is used to produce good X

• Goods X and Y are substitutes

• Goods X and Y are complements

• None of the above

The demand for notebooks is: Qd = 180 − 2P The supply of notebooks is: Qs = 6P If P = $30, which of the following is true?

• There is a surplus equal to 60

• There is a shortage equal to 60

• There is a surplus equal to 120

• There is a shortage equal to 120

• There is neither a surplus nor a shortage

Plastic and aluminum are substitutes in making drink cans. If the price of plastic rises, what is most likely to happen?

• The demand for aluminum will decrease

• The demand curve for aluminum will shift to the right

• The supply curve for aluminum will shift to the left

• The demand curve for plastic will shift to the right

• Nothing will happen to aluminum

Consider the market for apples. Suppose both of the following occur at the same time: (i) Demand for apples decreases (ii) A drought reduces apple harvests What will happen in the apple market?

• Equilibrium price uncertain, equilibrium quantity definitely decreases

• Equilibrium price definitely decreases, equilibrium quantity uncertain

• Equilibrium price uncertain, equilibrium quantity definitely increases

• Equilibrium price definitely increases, equilibrium quantity uncertain

The supply of smartphones is expected to decrease. At the same time, demand for smartphones increases due to a new app release. What will be the effect?

• Increase in equilibrium price and quantity

• Increase in equilibrium price and indeterminate change in quantity

• Decrease in equilibrium price and increase in quantity

• Indeterminate change in both price and quantity

• Decrease in equilibrium price and indeterminate change in quantity

Demand: P = 20 − 0.5Q Supply: P = 0.25Q What is the equilibrium price?

• $5

• $6

• $8

• $10

• $12