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WorksheetsDemand, Supply & Equilibrium
Total questions: 10
Worksheet time: 15mins
In which of the following situations will the demand curve for a good shift to the right?
An increase in the production subsidy paid on the good
A reduction in the production tax imposed by the government on the good
An increase in the supply of a substitute good
An increase in the supply of a complementary good
Normal goods are:
goods whose demand falls as people's incomes rise.
pairs of goods which are considered by consumers to be alternatives to each other.
goods whose demand rises as people's incomes rise.
pairs of goods consumed together.
Which of the following is not a determinant of demand?
The price of substitute goods
Income
Tastes
Profitability of other products
A change in the price of a product will cause:
a shift in the supply curve
a shift in the demand curve
no change
a movement along the demand curve
A market clears when:
supply matches demand
supply exceeds demand
demand exceeds supply
None of the available options here
You observe that the price of cereal falls but that the quantity sold rises. From this you can deduce that:
the supply curve has shifted to the left, but we cannot deduce whether or not the demand curve has shifted.
the supply curve has shifted to the right, but we cannot deduce whether or not the demand curve has shifted
the demand curve has shifted to the right, but we cannot deduce whether or not the supply curve has shifted.
the demand curve has shifted to the left, but we cannot deduce whether or not the supply curve has shifted.
The National Minimum Wage is an example of:
equilibrium in the free market economy.
a maximum price control
a minimum price control
the price mechanism
The government imposes a maximum rent on flats that is BELOW the equilibrium rent. You accurately predict that:
landlords are less likely to do routine maintenance work in the flats.
the new law will create a surplus of flats to rent.
the new law will have no economic impact.
renters will find that landlords start offering to furnish the flats.
Which of the following pairs of goods are likely to be considered substitutes?
A Ford car and public transportation
A Nokia cell phone and a Nokia cell phone charger
Coffee and sugar
Printers and printing ink
Which of the following pairs of goods are likely to be considered complements?
Nokia and Samsung cell phones
Laptops and electric heaters
Motorcycles and typewriters
Pens and writing pads
