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WorksheetsDemand, Supply & Equilibrium 2
Total questions: 10
Worksheet time: 14mins
Which of the following factors is likely to lead to an increase in the quantity demanded of pens?
A fall in the price of pen
A fall in the price of paper
A rise in the incomes of all consumers
A fall in the incomes of all consumers
The Law of Supply states that:
the quantity supplied of a good will always equal the quantity of the good demanded.
supply creates its own demand.
at the equilibrium price, there is always some excess supply in the market.
the quantity supplied of a good rises when the price rises.
Which of the following is likely to cause the demand curve for cars to shift to the left?
A rise in the price of fuel
An increase in the cost of production leading to an increase in the price of cars
An increase in the economy's national income
A rise in the price of cars
An expected increase in the market price of oil in the coming year is likely to:
shift the demand curve for oil to the left in the current year.
shift the supply curve of oil to the left in the current year.
shift the supply curve of oil to the right in the current year.
cause no changes in the demand and supply curves of oil in the current year.
Z is a normal good. The equilibrium price and quantity of Z in the year 2011 was $25 and 60 units, respectively. In 2014, the equilibrium price of Z had increased to $35 but the equilibrium quantity had decreased to 50 units. Ceteris paribus, which of the following could explain this change?
Shift of the supply curve of Z to the right
Shift of the supply curve of Z to the left
Shift of the demand curve for Z to the right
Shift of the demand curve for Z to the left
Z is a normal good. The equilibrium price and quantity of Z in the year 2011 was $25 and 60 units, respectively. In 2014, the equilibrium price of Z had increased to $35 but the equilibrium quantity had increased to 70 units. Ceteris paribus, which of the following could explain this change?
Shift of the supply curve of Z to the right
Shift of the supply curve of Z to the left
Shift of the demand curve for Z to the right
Shift of the demand curve for Z to the left
The Law of Diminishing Marginal Benefit states that:
the demand for a commodity is more dependent on income than on price.
lower levels of consumption give lower level of utility.
the demand for a commodity declines as its price increases.
the willingness to pay for an additional unit declines as more of a good is consumed.
In a perfectly competitive market, situations of surplus or shortage of a good:
are permanent phenomena.
are self-corrected due to the competitive nature of the market.
can exist simultaneously.
exist till the government or any ruling authority intervenes.
Which of the following factors is expected to cause the demand curve for coffee to shift to the right?
A higher tax on the sale of tea, a substitute for coffee
A higher personal tax on the income of all consumers
An increase in the supply of coffee due to better weather
A fall in the manufacturing cost of coffee
What will be the effect of a minimum price control imposed BELOW the equilibrium market price?
It will cause excess supply.
No effect.
There will be a surplus
Depends on the level of the price control
