Practise demand, supply, equilibrium, elasticity and surplus analysis to explain price changes, revenue, market adjustment and microeconomic choices using diagrams and…
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
B
What can be measured by cross-elasticity of demand?
a change in real income as a result of a change in the price of consumer goods
a change in the demand for a good in response to a change in the price of a complement
a change in the price of a good in response to a change in the demand for a substitute
a change in the price of a good when the demand for it changes
B
What is price elasticity of supply?
the change in the quantity supplied when a price changes
the change in the quantity supplied when demand changes
the comparison of the proportionate change in supply to the proportionate change in demand
the comparison of the proportionate change in supply to the proportionate change in price
D
The equation for the quantity demanded, QD, for a product is
where P= price in $. The quantity supplied, QS, is given by QS=100+40P.
Which change will occur if the price rises from $ 5 to $ 6 ?
The market will move from equilibrium to shortage.
The market will move from equilibrium to surplus.
The market will move from shortage to surplus.
The market will move from surplus to shortage.
B