Demand and Supply MCQ Quiz - Multiple Choice Questions & Answers Page 2

11. Which of the following causes an increase in the quantity supplied of good X but NOT in the supply of good X?

1. an increase in the price of X
2. an increase in the price of good Y, a complement in the production of X
3. an improvement in the technology for producing X
4. a reduction in the price of resources used to produce X

12. Because of increasing marginal cost, most supply curves

1. are horizontal.
2. have a negative slope.
3. are vertical.
4. have a positive slope.

13. The law of demand implies that, other things remaining the same,

1. as the demand for cheeseburgers increases, the price of a cheeseburger will fall.
2. as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease.
3. as income increases, the quantity of cheeseburgers demanded will increase.
4. as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase.

14. Which of the following pairs of goods are most likely substitutes?

1. compact discs and compact disc players
2. lettuce and salad dressing
3. cola and lemon lime soda
4. peanut butter and gasoline

15. The demand curve for a normal good shifts leftward if income ________ or the expected future price ________

1. decreases; falls
2. increases; rises
3. increases; falls
4. decreases; rises

16. Good A and good B are substitutes in production. The demand for good A increases so that theprice of good A rises. The increase in the price of good A shifts the

1. demand curve for good B rightward.
2. demand curve for good B leftward.
3. supply curve of good B rightward.
4. supply curve of good B leftward.

17. Wants, as opposed to demands,

1. depend on the price.
2. are the goods the consumer plans to acquire.
3. are the unlimited desires of the consumer
4. are the goods the consumer has acquired.

18. A reduction in the price of a good

1. does not shift the goods demand curve leftward but does decrease the quantity demanded.
2. shifts the goods demand curve leftward but does not decrease the quantity demanded.
3. shifts the goods demand curve leftward and also decreases the quantity demanded.
4. neither shifts the goods demand curve leftward nor decreases the quantity demanded.

19. The quantity supplied of a good is

1. equal to the difference between the quantity available and the quantity desired by allconsumers and producers.
2. the same thing as the quantity demanded at each price.
3. the amount that the producers are planning to sell at a particular price during a given time period.
4. the amount the firm would sell if it faced no resource constraints.

20. The demand for a good increases when the price of a substitute ________ and also increases whenthe price of a complement ________.

1. falls; falls
2. rises; falls
3. rises; rises
4. falls; rises