Which factor would cause a rightward shift of demand for a normal good?
A fall in income
A rise in income
A fall in price
An increase in cost of production
A fall in the price of a good will result in:
A shift of the supply curve
A shift of the demand curve
A movement along the supply curve
A movement along the demand curve
Which of the following would increase market demand?
An increase in population
A decrease in population
A fall in advertising
An increase in income tax
Product A and Product B are substitutes. The price of Product B rises. What happens to demand for Product A?
Supply increases
Quantity supplied increases
Demand increases
Demand decreases
Which factor would cause demand for chocolate to decrease?
Increase in advertising
Increase in population
Health concerns about sugar
Increase in income (normal good)
Which change causes a movement along the demand curve?
Change in population
Change in price of the good
Change in income
Change in tastes
If income decreases and the product is an inferior good, demand will:
Increase
Become perfectly elastic
Decrease
Remain unchanged
Which of the following does NOT affect demand?
Advertising
Cost of raw materials
Population
Income
An increase in income tax is most likely to:
Increase supply
Decrease demand
Increase demand
Decrease supply
Which statement about demand is correct?
It depends only on price
It is willingness and ability to buy
It is the same as supply
It depends on cost of production
Which factor would shift demand to the left?
Increase in advertising
Fall in income (normal good)
Increase in population
Rise in price of substitutes
The price of a complement falls. What happens to demand?
Demand increases
Supply increases
Demand decreases
Quantity supplied decreases
A rise in price leads to:
Quantity supplied contracting
Demand increasing
Quantity demanded contracting
Supply decreasing
Which example shows a shift of demand?
Quantity demanded increases
Income of consumers rises
Price of chocolate falls
Movement down the demand curve
Demand refers to:
Total production
Willingness only
Willingness and ability
Ability only
Which factor affects demand but not supply?
Number of firms
Technology
Advertising
Cost of production
If a good becomes less fashionable, demand will:
Become perfectly inelastic
Increase
Not change
Decrease
Which change would NOT cause a shift of demand?
Change in income
Change in tastes
Change in price of the good
Change in population
Demand curves slope downward mainly because:
Costs of production
Population growth
Advertising
Income effect and substitution effect
Which statement is correct?
Demand and supply are the same
Price changes shift demand
Non-price factors shift demand
Non-price factors cause movement
Which factor would cause a rightward shift of supply?
Increase in costs
Increase in indirect tax
New technology
Fall in productivity
A rise in the price of a good will cause:
A shift of supply
A movement along demand
A movement along supply
A shift of demand
Which factor affects supply but not demand?
Advertising
Income
Cost of production
Population
An increase in the number of firms will:
Increase supply
Decrease demand
Decrease supply
Increase demand
Which change would reduce supply?
Increase in raw material costs
Technological advance
Fall in wages
Subsidy
If firms expect prices to fall in the future, supply will:
Not change
Increase
Become perfectly elastic
Decrease
A subsidy given to producers will:
Shift supply right
Shift supply left
Reduce production
Shift demand left
Which change causes a movement along the supply curve?
Change in tax
Change in price of the good
Change in expectations
Change in technology
If producing another good becomes more profitable, supply of the original good will:
Remain unchanged
Become inelastic
Increase
Decrease
Supply refers to:
Willingness only
Total demand
Ability only
Willingness and ability to sell
Which factor would shift supply to the left?
New machinery
Subsidy
Increase in indirect tax
Increase in productivity
An increase in labour costs will most likely:
Increase demand
Increase supply
Decrease demand
Decrease supply
Which factor does NOT affect supply?
Costs
Income
Expectations
Technology
A fall in price causes supply to:
Contract
Shift right
Increase
Shift left
Which is an example of a supply-side shock?
Poor weather affecting crops
Increase in population
Change in tastes
Advertising campaign
Which statement about supply is correct?
It depends on income
It depends on population
It depends on costs
It depends on tastes
Which change would NOT shift supply?
Change in costs
Change in technology
Change in price
Change in tax
Supply curves slope upward mainly because:
Demand is high
Advertising increases
Population increases
Producers aim to maximise profit
A rise in price leads to:
Quantity supplied contracting
Quantity supplied extending
Supply decreasing
Supply shifting left
Which factor affects both demand and supply?
Population
Price of the good
Cost of production
Advertising
Demand is the willingness and __________ of consumers to buy goods and services.
A change in the price of a good causes a __________ along the demand curve.
Non-price factors cause a __________ of the demand curve.
An increase in income will increase demand for a __________ good.
A rise in the price of a substitute will cause demand to shift to the __________.
Supply is the willingness and ability of producers to __________ goods and services.
A fall in costs of production will cause supply to shift to the __________.
A subsidy reduces production costs and increases __________.
An increase in indirect tax will cause supply to shift to the __________.
A change in the price of a good causes a __________ along the supply curve.