Practise defining effective demand, aggregating individual curves and distinguishing movements from shifts when income, related prices, costs, technology or policy changes.
A change in which factor will be least likely to alter a consumer's ability to pay for a product?
a consumer's income
a consumer's tastes
a change in the price of the product
a fall in the tax on goods and services
What most accurately describes a market supply curve?
supply at different income levels, assuming product prices remain unchanged
supply at different levels of factor prices, assuming product prices remain unchanged
supply at different prices, assuming no changes in technology
supply at different time periods, assuming no changes in technology
What is likely to affect the position of the demand curve for tickets to pop concerts but not the position of the supply curve?
a change in incomes of potential customers
a change in price of tickets to the concerts
a change in rents charged by venue owners
a change in seating capacity of concert venues
In calculating the short-run supply schedule for a firm, what is assumed to remain unchanged?
the number of consumers
the price of the good
the quantity of raw material inputs
the state of technology
The diagram shows the demand for and supply of hotel accommodation. The market equilibrium is at point E.
The hotel receives a very large number of bad reviews about the quality of its accommodation.
Which point on the diagram would show the new market equilibrium?
The pressure to reduce the use of fossil fuels has led to oil companies reducing the level of investment in the exploration of new reserves.
What will be the long-run effect of such a policy on the market for oil?
market change
price change
upward movement along the demand curve
price decreases
downward movement along the demand curve
price increases
supply shifts to the left
price increases
supply shifts to the left
price decreases
What would not cause a shift in the demand curve for a good?
a change in the price of a complement
a change in the price of a substitute
a change in the price of the good itself
a change in consumers' incomes