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CHAPTER 2 : DEMAND & SUPPLY THEORY

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

A movement along a demand curve can be influenced by

a)

tastes

b)

population

c)

the product's price

d)

consumer's income

2.

The law of demand states that

a)

a decrease in the price of a goods will cause the demand curve to shift to the left

b)

an increase in the price of a goods will cause the demand curve to shift rightwards

c)

the price of goods is negatively related to the quantity demanded of the goods

d)

the price of goods is positively related to the quantity demanded of the goods

3.

An increase in the sales tax by government will cause the

a)

demand curve shift to rightward

b)

demand curve shift to leftward

c)

supply curve shift to rightward

d)

supply curve shift to leftward

4.

If two goods are complementary, a drop in price of one goods will

a)

increase the demand for the other goods

b)

decrease the demand for the other goods

c)

increase the quantity of demanded for the other goods

d)

increases the demand for both goods

5.

The quantity supply goods S in the market increases as a result of

a)

export of goods S decrease

b)

imports of goods S increased

c)

price increase of goods S

d)

increase in production technology

6.

Which from the following factors, DOES NOT influence the supply of goods?

a)

Input price

b)

Level of technology

c)

Producers goals

d)

Level of income

7.

Exceptional demand curve will have a positive slope if

a)

the country experiences an economic downturn

b)

it is a prestigious goods

c)

the price of the goods is expected to increase in the future

d)

the price of the goods is expected to decrease in the future

8.

When the price of Goods A increases, the demand for Goods B increases, while the demand for Goods C decreases. What is the relationship between Goods A, B and C

a)

Goods A is a substitute goods for Goods B and a complementary goods for Goods C

b)

Goods A is a complementary goods for Goods B and a substitutes goods for Goods C

c)

Goods A is a substitutes goods for both Goods B and C

d)

Goods A is a complementary goods for both Goods B and C

9.

Any decrease in the supply quantity of a product due to its price reduction will be shown by

a)

an upward movement along the supply curve

b)

a downward movement along the supply curve

c)

a shift of the supply curve to the left

d)

a shift of the supply curve to the right

10.

What is a definition of demand from an economic perspective

a)

the desire to purchase goods and services at certain price

b)

the desire of all individuals in a market to purchase goods and services at a certain price

c)

the ability of an individual to spend his income to purchase goods and services

d)

the desire of an individual to obtain goods and services, supported by the ability to pay a goods and services at certain price