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C2 : SET 3 - DEMAND AND SUPPLY THEORY

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

When the decrease in the price of one item causes the demand for another item to decrease, relation of the items are; _____________.

a)

complements

b)

inferior

c)

normal

d)

substitutes

2.

“The quantity demanded for Nescafe’ has decreased”. This statement means _______________.

a)

Nescafe’ consumers have an increase in income.

b)

the price of Nescafe’ increased

c)

the price of Indocafe’ has increased

d)

Nescafe’s advertising is not as effective as in the past.

3.

A likely example of complementary goods would be _______________.

a)

burgers and hotdogs

b)

petrol and automobiles

c)

burgers and french-fries

d)

Coke and Pepsi

4.

An increase in the price of one product will increase the quantity demanded of another product and vice versa, applies to _______________.

a)

substitutes goods.

b)

complementary goods.

c)

inferior goods.

d)

normal goods.

5.

Which of the following can lead to an increase in the

supply for good X?

a)

A decrease in the number of seller of goods X.

b)

An increase in the price of inputs used to make goods X.

c)

An increase in consumer’s income, assuming goods X is a normal.

d)

An improvement in technology used in production of goods X

6.

Which of the following will NOT cause an increase in the market demand for Scholl (a brand of shoes)?

a)

A decrease in the price of Scholl.

b)

An increase in the price of Clerk (brand of shoes).

c)

An increase in the price of shoes protection sprays.

d)

An increase in income, if Scholl is s luxury goods

7.

Which of the following shifts the demand curve for iPhone 7 to the right?

a)

A decrease in the price of iPhone 7.

b)

A decrease in consumer income if iPhone 7 is normal goods.

c)

An increase in the price of iPhone 7.

d)

An increase in consumer income if iPhone is normal goods.

8.

As price fall, _______________.

a)

demand rises.

b)

quantity demand falls.

c)

demand falls.

d)

quantity demand rises.

9.

Goods for which demand is negatively related to income

are called _______________.

a)

normal

b)

substitute

c)

complement

d)

inferior

10.

In the market for tea, for some consumers

_________________.

a)

cola is a complement.

b)

coffee is a substitute.

c)

sugar is a substitute.

d)

green tea is a complement.