A. increase
B. not change
C. decrease
D. shift
Related Mcqs:
- When supply exceeds demand, sellers must lower prices to stimulate sales, when demand exceeds supply, prices increase as buyers compete to buy goods. What this theory is called in economics?
A. Cost push theory
B. Supply and Demand theory
C. Fundamental theory
D. Ricardo’s theory - If income where to double and prices were to to double the budget line would ?
A. stay the same
B. rotate inward
C. shift outward in a parallel fashion
D. rotates outward
E. shift inward in parallel fashion - In certain industries Japanese employers hesitate to lay off workers Therefore they sometimes have excess supplies of goods that they cannot sell on the home market without lowering prices. To hold down losses they sell goods in overseas markets at prices well beneath those in japan This practice is best referred to as ?
A. Orderly marketing
B. trigger pricing
C. domestic content pricing
D. dumping - In food demand growth equation D = Φ + a E, a is the income elasticity of demand for food E is the per capita income growth and Φ is ?
A. Poverty rates
B. food security index
C. change in the quantity of food demanded per capita
D. population growth - What is called increased demand for a limited supply of goods and service result of which is increase in consumer prices ?
A. Demand push
B. Demand pulls
C. Cost pull
D. Demand supply - A change in the relative prices of which of the following pair of goods would likely cause the smallest substitution effect ?
A. right shoes and left shoes
B. petrol from BP and petrol from shell
C. kit-Kat chocolate snacks and Twix chocolate snacks
D. coke and Pepsi - If the cross-price elasticity of demand between two goods is negative, then the two goods are ?
A. normal goods
B. unrelated goods
C. Substitutes.
D. Complements - An increase in consumer income will increase demand for a _________ but decrease demand for a?
A. substitute good, inferior good
B. normal good inferior good
C. inferior good normal good
D. normal good, complementary good - Aggregate demand is the total demand for all goods and services in an economy from ?
A. the household and government sectors
B. the household sector.
C. all sectors of except the rest of the world
D. all sectors of the economy including the rest of the world. - An increase in aggregate demand is more likely to lead to demand pull inflation if ?
A. Aggregate supply is perfectly elastic
B. Aggregate supply is Perfectly inelastic
C. Aggregate supply is unit elastic
D. Aggregate supply is relatively elastic
