Question

NI There is but one correct answer to each multiple choice question. If Demand decreases by a greater amount than Supply decreases, then Pricean a. Increases, decreases b Deceases, increases c. Decreases, decrease 1. d. Increases, increase 2. A change in the demand for Pork can be caused by a. A change in the price for beef b) A change in the price for pork c. A change in the cost of producing pork 3. An increase in quantity supplied of cotton can be caused by a. a decrease in its price b. an increase in its price c. an increase in its cost of production d. a decrease in the supply of cotton 4. Which of the following is NOT a determinate of market supply? a. The number of suppliers b. The current state of technology c. Taste of consumers d, Resource prices e. An excise tax to be placed on the product 5. If we raise price when the demand is inelastic, total revenue will while if we raise price in the elastic phase, total revenue will a. Increase, increase b. Decrease, decrease c. Increase, decrease d. Decrease, increase

Answer 1

ans 1=option c

As magnitude of decrease in demand is more thus price for the product will fall and equilibrium quantity will also fall.

ans 2=option a

As beef is a substitute product a change in its price level will cause change in demand for pork.

ans 3=option b

An increase in quantity supplied of a product is brought about by an increase in the level of price of that product.
A supply curve depicts how much the quantity supplied alters when the level of price alters.
A change in quantity supplied is depicted by a movement along the supply curve.

ans 4=option c

Taste of customers is a factor impacting the demand.

ans 5=option c

The TR test is a means for ascertaining if demand is elastic / inelastic. If a rise in price level causes a rise in TR, then demand is said to be inelastic, because the rise in price level doesn’t have a big effect on the quantity demanded.