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.Management Sciences
Category: Supply and Demand
Increased level consumption ?
A. shift aggregate supply to the right
B. shift aggregate supply to the left
C. shift aggregate demand to the right
D. shift aggregate demand to the left
If both marginal cost and marginal revenue increase, a firm ?
A. Should increase output
B. Should reduce output
C. will require further information on how to respond
D. Should not change output
Price increases from 10 to 12 pence and the price elasticity of demand is -0.5 The quantity demanded was 500 units. What will it be now ?
A. 550 units
B. 500 units
C. 450 units
D. 490 units
An increase in income should ?
A. Shift demand for an inferior product outward
B. shift demand for an inferior product inward
C. shift supply for an inferior product outward
D. Shift supply for an inferior product inward
The price elasticity of demand measures ?
A. The responsiveness of quantity demanded to a change in price
B. How far a demand curve shifts
C. a change in price
D. a change in quantity demanded
Economics assumes that people consume goods and services to achieve ?
A. Status
B. Prestige
C. Utility
D. Self-esteem
If marginal utility is zero ?
A. Total utility is zero
B. An additional unit of consumption will decrease total utility
C. An additional unit of consumption will increase total utility
D. Total utility is maximized
The price elasticity of demand is the ?
A. ratio of the change in price to the change in quantity demanded.
B. ratio of the percentage change in quantity demanded to the percentage change in price.
C. ratio of the change in quantity demanded to the change in price.
D. ratio of the percentage change in price to the percentage change in quantity demanded.
Suppose the demand for good Z goes up when the price of good Y goes down. We can say that goods Z and Y are ?
A. perfect substitutes
B. complements
C. unrelated goods.
D. substitutes.
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