NEW
Font size
S
M
L
XL
WorksheetsUnit 1 : demand & supply
Total questions: 11
Worksheet time: 8mins
Name
Class
Date
1.
When college students leave town for the summer, the demand for meals at the local restaurants declines. This results in
a)
a decrease in equilibrium price and an increase in quantity.
b)
an increase in equilibrium price and quantity.
c)
a decrease in equilibrium price and quantity.
d)
None of these
2.
All the following shift the demand curve for automobiles to the right except:
a)
The local factory gives a big raise to its employees.
b)
A brand new automobile dealership opens in town.
c)
The price of gasoline falls.
d)
None of the Above
3.
What happens in the market for airline travel when the price of traveling by rail decreases?
a)
The demand curve shifts left.
b)
The demand curve shifts right.
c)
The supply curve shifts left.
d)
We move along the supply curve.
4.
Which of the following influences people's buying plans and varies moving along a demand curve?
a)
preferences
b)
the price of the good
c)
income
d)
the prices of related goods
5.
An unusually warm winter
a)
shifts the supply curve of gloves leftward.
b)
shifts the demand curve for gloves rightward.
c)
shifts the demand curve for gloves leftward.
d)
shifts the supply curve of gloves rightward.
6.
Let Qd stand for the quantity demanded, Qs stand for the quantity supplied, and P stand for price. If Qd = 20 - 2P and Qs = 5 + 3P, then the equilibrium price is
a)
2
b)
3
c)
4
d)
1
7.
When supply decreases and demand does not change, the equilibrium quantity
a)
decreases and the price rises.
b)
increases and the price falls.
c)
decreases and the price falls.
d)
increases and the price rises
8.
The horizontal demand curve parallel to x-axis implies that the elasticity of demand is:
a)
Zero
b)
Infinite
c)
Equal to one
d)
Greater than zero but less than infinity
9.
Income elasticity of demand is defined as the responsiveness of:
a)
Quantity demanded to a change in income
b)
Quantity demanded to a change in price
c)
Price to a change in income
d)
Income to a change in quantity demanded
10.
The amount that consumers plan to buy during a given time period at a particular price is the
a)
quantity supplied.
b)
supply.
c)
quantity demanded.
d)
demand.
11.
A good whose demand increases as income increases is a
a)
Normal good
b)
Complementary Good
c)
Inferior good
d)
Subsitute
Reset
