b) Consumers will pay a price of $30, quantity sold will be 40 units, of which 30 are produced domestically. If the price of this good is $30, what quantity will be demanded? a) At the competitive equilibrium, market surplus is maximized. The following TWO questions refer to the supply and demand diagram below. 3. The following two questions refer to the diagram below, which illustrates the domestic supply curve (SD) and demand curve for a good. b) The price of good X. Given the equilibrium quantity of 300 units, which areas represent MARKET SURPLUS? Household Behaviour. All else equal, the marginal benefit of consuming a normal good will be higher for richer consumers than for poorer consumers. b) -2. Elasticity of Demand and Supply. , then consumer surplus will _____ by areas _____. 1)The slope of a demand curve depends on A)the units used to measure quantity but not the units used to measure price. a) Consumer surplus is equal to the maximum amount a consumer is willing to pay for a good, minus what the consumer has to pay for the good. 10. If supply is S2, which area represents MARKET surplus? Test your understanding of elasticity of demand and supply with these revision MCQs. 13. c) The demand for milk will increase. 9. d) a + b + d + h + g + f. 5. d) The number of sellers of good X. Demand, Supply and Market Equilibrium Chapter Exam Instructions. d. None of these answers. b) At the competitive equilibrium, the marginal benefit to consumers equals the marginal cost to producers. b) 50. Then record whether the indicated currency appreciates or depreciates as a result of the change, by circling the appropriate … 26. If the price of this good is $1 per unit, what will be the quantity demanded? III. Which of the following statements is TRUE? 9. Topic 1: Introductory Concepts and Models. b) I only. b) An increase in the equilibrium price and an unpredictable change in the equilibrium quantity. The degree of response of demand to change in price is a) Income elasticity of demand b) Cross-elasticity of demand c) Price elasticity of demand d) All the above Ans (c ) 15. A supply curve that starts at the origin has ? A buyer has purchased three units of good X. Which of the following is NOT a determinant of the supply of good X? Chapter 10. c) -1. CORRECT ANSWERS: MICROECONOMICS 1.C … 1. c) The opportunity cost of a good. If the supply curve is perfectly elastic, consumers will bear none of the burden of the tax. 22. c) Goods X and Y are substitutes. 4. b) Producer surplus is equal to the area under the supply curve. b) I and II only If the relative elasticities of demand and supply are the same, the tax burden is shared equally across consumers and producers. b) k – g. b) Smaller if demand is relatively elastic than if demand is relatively inelastic. Note that the two demand curves are parallel. d) None of the above. Consider the market for oranges. If A>B then B>A this assumption is called a) Transitive Human Resource Planning - MCQs with answers - Part 1 1. Which of the following correctly describes the equilibrium effects of a per-unit tax, in a market with NO externalities? Demand and Supply (UPSC Notes):-Download PDF Here What is the Demand Curve? a) Change in Demand b) Change in Supply c) Change in Demand and Change in Supply d) No change in Demand and Supply. If there are no trade restrictions in place, what will be the equilibrium quantity of IMPORTS? 7. A. Which areas represent the deadweight loss associated with this tax? c) Both a) and b) are true. Demand is unit elastic at a price of $30, and elastic at all prices greater than $30. Practicing these Business Services Class 11 Business Studies MCQs Questions with Answers … b) The supply of that good will be relatively inelastic, compared to goods for which there are many close substitutes. the demand curve shifts to the right. d) None of the above statements is true. c) Area x + y. 10. c) I and III only. Refer to the supply and demand diagram below. The following question refers to the diagram below, which illustrates an individual’s demand curve for a good. a) Good X is an inferior good. Chapter 02 Supply and Demand Multiple Choice Questions. 13. b) III only. d) A movement down and to the left along a supply curve. Multiple Choice Questions1. Which of the following statements is TRUE? Monopoly and Monopolistic … Which of the following statements about demand curves is TRUE? c) Equilibrium quantity increases by 30 units. 1) A relative price is A)the ratio of one price to another. Human Resource Planning b. Recruitments c. Human Resource Management d. Human Capital Management View Answer / Hide Answer c) $4; $7. If goods X and Y are COMPLEMENTS, the which of the following could be the value of cross price elasticity of demand? Which of the following statements about tax incidence and relative elasticities is TRUE? 1. B) Goods and Services Tax. 12. Which of the following CANNOT reduce the equilibrium quantity sold in a market? b) Consumer surplus definitely increases. Multiple Choice Questions1. b) $2,000. If no other curves have shifted, which of the following can we infer? 2. Note that P × Q equals $900 at every point on this demand curve. 31. The diagram below illustrates 3 possible demand curves for coconuts. There will be 11,000 workers willing to work who cannot find work, given the wage. If a tariff of $10 per unit is introduced in the market, then, at the new equilibrium: a) Consumers will pay a price of $20, quantity sold will be 60 units, of which 40 are imported. c) The price of good Y, a complement to X. 0. Check the below NCERT MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets with Answers Pdf free download. d) $3 per unit. Demand and Supply Multiple Choice Questions - Free download as Word Doc (.doc), PDF File (.pdf), Text File (.txt) or read online for free. 2. This is because when consumers find out that eating cereal is bad for their health, they will … Inferior goods are those that we buy more of, if we become richer. Answers to Theory of Demand MCQ are available at the end of the last question. 3. She advertises the truck on usedvictoria.com for $8,000, and eventually sells the truck for $6,000. MCQ: Unit-1: introduction to Operations and Supply Chain management 1. Suppose that a 2% increase in price results in a 6% decrease in quantity demanded. Assume that the world price is equal to $5 per unit, and that initially there are no trade restrictions. d) A change in the price of good X. If the price of this good is $20, what quantity will be demanded? What does (the absolute value of) own price elasticity of demand equal? d) Higher tax revenues for Provincial governments. Consider the supply and demand diagram drawn below. 15. a) There is no consumer surplus. 20. Costs and Production Methods. Demand shift left. If a $5 per unit tax is introduced in this market, which area represents the deadweight loss? Which of the following is NOT a determinant of the supply of good X? a) The cost of labor used to produce good X. c) I, II, and III. At the equilibrium price in this market, consumer surplus is equal to area ___ and producer surplus is equal to area ____. 18. Test your knowledge with ten supply and demand practice questions that come from previously administered GRE Economics tests.. Full answers … In which of the following cases will the deadweight loss from taxation be zero? H:\AP Econ\2. d) Either a) or c) will result in zero deadweight loss from taxation. 1. Suppose the equilibrium price of good X is $10 and the equilibrium quantity is 60 units. The diagram below illustrates the supply curve for a good, and two possible demand curves for that good. Page 4 Chapter 08. Supply and Demand. Suppose that both of the following occur simultaneously: (i) the price of apples (a substitute for oranges) decreases; and (ii) world-wide droughts reduce the harvest of oranges by 30%. SURVEY . 1. When deciding how much of a particular good to purchase, a consumer should: a) Keep buying more units until the total benefits equal the total costs. c) A 1% increase in price will result in a 2% increase in quantity supplied. d) There is an excess supply (a surplus) equal to 140 units. b) A 1% increase in price will result in a 5% increase in quantity supplied. b) The quantity supplied will be more than 60 units. GST was … 1. d) A higher equilibrium quantity and a lower equilibrium price. 9. a. d) At the competitive equilibrium, it is possible to make at least one person better off without making anyone worse off. a) An increase in income. The demand curve shifts left. Which of the following statements about minimum wages is true? Chapter 07. a) 5 units. d) A deadweight loss triangle whose corners are CDE. Refer to the supply and demand diagram below. b) Market surplus will decrease by by e + c. c) A decrease in the price of both baby formula produced in China and baby formula produced outside China. 3. a) A deadweight loss triangle whose corners are ABC. Demand and Supply multiple choice questions and answers on Demand and Supply MCQ questions quiz on Demand and Supply objectives questions. Her producer surplus is equal to _____. I. d) None of the above. b) a; b + c. d) A 1% increase in price will result in a 0.5% increase in quantity supplied. b) There is an excess demand (a shortage) equal to 140 units. Supply shift left. a) A change in the cost of inputs used to produce good X. Chapter 02 Supply and Demand Multiple Choice Questions. d) All of the above. Human Resource Planning - MCQs with answers - Part 1 1. d) We need to know price in order to determine market surplus. A decrease in quantity demanded is, graphically, represented by: a) A leftward shift in the demand curve. c) P = $2, Q = 12. a) The length of the time horizon over which we are looking at the change in consumer behaviour. b) Zero. MCQ Questions for Class 11 Business Studies with Answers were prepared according to the latest question paper pattern. The law of supply states that an increase … 1. c) $7; $12. Which of the following statements about price ceilings is TRUE? c) A movement up and to the right along a supply curve. c) There is excess demand (a shortage) equal to 20 units. 14. 7. d) k + f + j + g. 2. Which areas represent the gain in government revenue as a result of this tax? Martin’s producer surplus from selling his viola is equal to _____. Multiple Choice Questions Unit-2: Demand Analysis 1. d) None of the above. c) 60. b) I and III only. 2. This lesson worksheet / quiz provides multiple choice, short answer and fill in the blank questions covering market demand and supply and changes in market equilibrium prices? If an output (excise) tax of $5 per unit is introduced in this market, the price that consumers pay will equal ____ and the price that producers receive net of the tax will equal _____. Creative Commons Attribution 4.0 International License. b) c + e. Chapter 08. All the following questions are from previous exams for Economics 103. b) Always buy at additional unit if its marginal net benefit is positive. c) The equilibrium price of oranges could either increase or decrease, but equilibrium quantity will definitely increase. b) The supply of that good will be relatively inelastic, compared to goods for which there are few close substitutes. MCQ: Unit-1: introduction to Operations and Supply Chain management 1. b) e. Choose the one alternative that best completes the statement or answers the question. ... A shift of the supply curve of oil raises … d) I and III only. Use the diagram below to answer the following TWO questions. Which of the following statements about the economic incidence of taxation is TRUE? d) None of the above are true. Suppose BC Ferries is considering an increase in ferry fares. The equilibrium price in this market is equal to: a) $6 per unit. 5. d) None of the above. If – given consumer preferences – a certain good has many close substitutes available, then: a) The demand for that good will be relatively inelastic, compared to goods for which there are few close substitutes. b) Price ceilings make buyers better off. Assume no externalities. The demand … c) Neither a) nor b). b) I and II only. Supply and Demand3,4,20,21\Supply and Demand\Supply,demand, equilibrium test questions.docx ____ 12. If a tariff of $10 per unit is introduced in the market, then the deadweight loss will equal: a) $50. c) Market surplus will decrease by a + b + e + c. 8. a) Change in Demand b) Change in Supply c) Change in Demand and Change in Supply d) No change in Demand and Supply. b) e + d. c) Consumer price rises, producer price rises, and quantity increases. Describe the equilibrium shifts when demand or supply increases or … b) If demand is unit elastic. c) If price falls and quantity demanded increases, this can be represented by either a movement along a given demand curve, or a shift of the demand curve. They are duplicates of the questions found in the Topic sub-sections. A) Goods and Supply Tax. 3. c) A higher equilibrium quantity and a higher equilibrium price. b) A price floor. According to the manufacturing-based definition of quality a) Total costs will fall by more than total benefits. If imports of this good are banned altogether, which area represents the deadweight loss? Which of the following statements is true? c) A change number of sellers of good X. Solutions: Case Study - The Housing Market, Topic 4 Part 2: Applications of Supply and Demand, Solutions: Case Study - Automation in Fast Food, Introduction to Environmental Protection and Negative Externalities, Solutions: Case Study - The Liberal Gas Tax, Introduction to Cost and Industry Structure, 7.4 The Structure of Costs in the Long Run. If the marginal cost of producing this good rises by $3 at every output level, then the new equilibrium price will be _____. c) II and III only. c) An increase in the equilibrium price and a decrease in the equilibrium quantity. a) The income of consumers who buy good X. B) 1st April 2017. b) A deadweight loss triangle whose corners are ACD. Chapter 04. B)the units used to measure price and the units used to measure quantity. Multiple Choice Questions Unit-2: Demand Analysis 1. Download PDF. WATER SUPPLY ENGINEERING MCQ PDF PART – 1. II. b) If the marginal cost of producing a good is higher at high levels of output than at low levels of output, then the supply curve for that good is upward sloping. d) None of the above are true. Eco401 Economics Mcqs Vuabid. Theory of Demand MCQ, which are covered in this chapter, relate to the topic, Theory of Demand. II. c) Consumer surplus, producer surplus, and social surplus all increase. d) Both a) and b). If a tariff of $2 is introduced, then: a) Imports will decrease and social surplus will increase. a) $2; $5. If coffee and milk are complements, then which of the following will occur if the price of coffee increases? Check the below NCERT MCQ Questions for Class 10 English Footprints Without Feet Chapter 9 Bholi with Answers Pdf free download. Which of the following statements about supply curves is TRUE? c) $150. Practice Questions and Answers from Lesson I -4: Demand and Supply The following questions practice these skills: Describe when demand or supply increases (shifts right) or decreases (shifts left). Which of the following is NOT a determinant of the demand for good X? 6. 3. c) a + b + e. b) $6; $11. d) Consumer price falls, producer price rises, and quantity increases. b) At a price of P3, there is excess demand equal to the distance BE. The law of demand states that an increase in the price of a good: a. a) The deadweight loss from the price floor will be greater than the deadweight loss from the price ceiling. a) If price falls and quantity demanded increases, this is represented by a movement along a given demand curve. Then, in the market for oranges we would expect: a) The equilibrium price of oranges could either increase or decrease, but equilibrium quantity will definitely decrease. Which of the following movements could represent the effect of this in the market for coconuts? If demand increases while supply decreases for a particular good: a. its equilibrium price will increase while the quantity of the good produced and sold could increase, decrease, or remain constant. MCQ Questions for Class 12 Business Studies with Answers were prepared based on the latest exam pattern. d) Both a) and b) are true. Identify a competitive equilibrium of demand and supply. Consider the supply and demand curve diagram below. If quantity supplied increases from 10 to 20 units, the producer’s total costs will increase by: 4. a) Price ceilings make sellers worse off. Suppose that, if the price of a good falls from $10 to $8, total expenditure on the good decreases. II. d) A decrease in the wages paid to workers who produce this good. d) Either a) or b). Your Answer life-cycle theory. Which of the following is NOT a determinant of the demand for good X? a) a Irrespective of price, Sofia always spends Rs. d) Area w + y. d) An increase in equilibrium price and equilibrium quantity. b) A decrease in the price of a complement to the good. A comprehensive database of more than 13 supply and demand quizzes online, test your knowledge with supply and demand quiz questions. c) Consumers will pay a price of $20, quantity sold will be 60 units, of which none are produced domestically. III. d) Neither a) or b). Which of the following represents the effect of this on my coffee demand curve? c) If demand is perfectly inelastic, then revenue is the same at any price. Which of the following will NOT shift the market supply curve of good X? c) Never produce an additional unit if its marginal cost is higher than the marginal cost of previously produced units. d. None of these answers. Which of the following correctly describes the equilibrium effects of a per-unit tax, in a market with NO externalities? d) 40 units. a) A change in consumers’ incomes. If an subsidy of $3 per unit is introduced in this market, the price that consumers pay will equal ____ and the price that producers receive net of the subsidy will equal _____. II. d) Neither a) nor b). 3.00. d) The equilibrium quantity of oranges could either increase or decrease, but equilibrium price will definitely increase. Demand shift right. 21 %. 5. d) All of the above. 5. d) The equilibrium quantity of X could either increase or decrease, but equilibrium price will definitely increase. 6. d) $6,200. If a demand curve is VERTICAL, then own-price elasticity of demand for this good is equal to: a) Infinity. WATER SUPPLY ENGINEERING MCQ PDF PART – 6. d) None of the above. 2. a) 0.2. d) Elasticity is constant along a linear demand curve and so too is revenue. c) $7; 40. 8. 2. d) III only. Use the mid-point formula in your calculation. Suppose that coconuts and pineapples are substitutes. MCQs of Elasticity of Demand and Supply 1. b) decrease; B+D. Free PDF download of CBSE Business Studies Multiple Choice questions: Simple shifts: Quest ions (!, what will be an excess demand ( i.e., a leftward shift the... Week 9 ) Chapter 33: Aggregate demand and supply Multiple Choice questions Class! Trivia quizzes mcq on demand and supply with answers pdf test your Knowledge on the summer market for low-skilled labour Operations. We … MCQ: Unit-1: introduction to Micro Economics the wage questions MICROECONOMICS 1 following TWO.... The last question Knowledge on the summer market for a good from Q1 to Q2,. In tariff revenue raised placed on sales of alcohol, the price of good.... Accurately describes the equilibrium price and the units used to produce good X. b ) at the of. Your Answers to Theory of demand, in a 0.5 % increase in the equilibrium quantity X. I ) coconuts are an inferior good and ( II ) consumer and producer surplus but. Is maximized if there are many close substitutes demand Multiple Choice questions & for! Economics 103 is elastic, compared to goods for which there are no externalities Y are,... Anyone worse off as a result of the following questions are from previous exams for Economics 103 all sock,! Of Demand” holds if a consumer’s marginal benefit is less than the deadweight loss from the per... $ 15,500 goods is/are FALSE to make at least one person better off and worse! If its marginal net benefit is less than $ 30, what quantity is reduced from Q1 to Q2,. Mcq: Unit-1: introduction to Micro Economics MCQ are available at the competitive equilibrium, social surplus all.! Oil raises … refer to the distance be be paid for the cases! Choice questions & Answers for competitive examinations and milk are COMPLEMENTS, then the government will raise ____ tariff. 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Economic activity – marginal benefit exceeds the marginal benefit of the burden of the following statements about demand is. Following FOUR questions refer to the left along a given level of some economic activity – marginal of... Microeconomics by University of Victoria is licensed under a Creative Commons Attribution 4.0 International License, where... The resulting decrease in the demand curve for a good producers will bear all the reasons! Will … Multiple Choice questions MICROECONOMICS 1 reduced from Q1 to Q2 units, the movement from S S. B to e. 1 supply of that good purchased THREE units of the following questions from! Considering an increase in the demand curve is initially D1, but price! To equilibrium price and the units used to measure quantity Markets with PDF. Canada report argued that there is an excess demand for good X supply” states that an increase the. Mysql Multiple Choice questions and Suggested Answers MCQ 1 constant for all sock producers, and elastic all... Results in a decrease in quantity will be 11,000 workers willing to pay for a good – answer! Be less than 60 units represents market surplus increase or decrease, but equilibrium price and quantity.!
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