Choose the correct answer for each question in the quiz
The Law of Supply states that, other things being constant, when the price of a good increases then;
Supply and demand both decrease.
Demand increases and supply decreases.
The quantity demanded decreases.
The quantity supplied increases.
An increase in the price of a complement for product A would:
Shift demand for product A out to the right.
Shift demand for product A into the left.
Shift supply for product A out to the right.
Shift supply for product A in to the left.
A demand function is Qd = 50 – 6P, when price is €15, quantity demanded is
-40.
-20.
40.
0.
Which one of the following would NOT result in an increase in the quantity demanded for CIT parking?
An increase in real incomes.
Extra parking spaces being made available.
An increase in the price of CIT parking.
None of the above.
The price of student special decreased from €4.00 to €3.50 in the Canteen. Which of the following effects would you expect?
A movement along the demand curve for student special resulting in a higher price and a lower quantity demanded.
A movement along the demand curve for student special resulting in a lower price and a higher quantity demanded.
A shift in the demand curve for student special to the left.
A shift in the demand curve for student special to the right.
If the supply curve shifts to the right, how does this affect the market for product A?
A higher equilibrium price and a higher equilibrium quantity.
A lower equilibrium price and a lower equilibrium quantity.
A higher equilibrium price and a lower equilibrium quantity.
A lower equilibrium price and a higher equilibrium quantity.
Below is a demand function for Good A. Where p is the price of the good and q is the quantity demanded. If the price of the good increases from €40 to €50, which of the following statements is true: Q = 250 - 4p
Quantity demanded decreases by 50 units.
Quantity demanded decreases by 90 units.
Quantity demanded decreases by 40 units.
Quantity demanded decreases by 140 units.
Which of the following most accurately describes equilibrium in a market?
The quantity supplied and the quantity demanded are equal at the current price.
The number of sellers is equal to the number of buyers.
Quantity demand exceeds quantity supply.
Quantity supply exceeds quantity demand.
Which of the following statements best describes a price floor?
A price that suppliers can be sure to receive for their output.
A price floor will cause an excess supply of a good.
A price higher than the market equilibrium price.
All of the above.
The market for Product A is at equilibrium at a price of €35. How will the market be affected if the government introduces a ceiling price which is €15 below the equilibrium price?
The ceiling price will have no effect on the market.
The new price for product A will be €20 and there will be excess demand at this price.
The new price for product A will be €50 and there will be excess supply at this price.
The market mechanism will ensure that the market returns to equilibrium.
