A. Supply would tend to be price elastic
B. none of these answers
C. demand would tend to be price inelastic
D. demand would tend to be price elastic
Related Mcqs:
- When ________ substitutes exist, a monopolist has ________ power to raise price?
A. more; more
B. fewer; less
C. more; less
D. no; infinite - indifference curves for perfect substitutes are ?
A. right angles
B. bowed outward
C. straight lines
D. nonexistent
E. bowed inward - If consumers always spend 15 percent of their income on food. then the income elasticity of demand for food is ?
A. 1.50
B. 1.15
C. none of these
D. 0.15
E. 1.00 - The real income of domestic producers and consumers can be increased by ?
A. Technological progress, but not international trade
B. International trade but not technological progress
C. Technological Progress and international trade
D. Neither technological progress nor international trade - If we consider the impact on both consumers and producers, then protection of the steel industry is ?
A. In the interest of the U.S as a whole but not in the interest of the state of Pennsylvania where steel mills are located
B. In the interest of the U.S as a whole and in the interest of the state of Pennsylvania
C. Not in the interest of the U.S as a whole, but it might be in the interest of the state of Pennsylvania
D. Not in the interest of the U.S as a whole, nor in the interest of the state of Pennsylvania - What effect is working when the price of a good falls and consumers tend to buy it instead of other goods ?
A. The ceteris paribus effect
B. The diminishing marginal utility effect.
C. The substitution effect
D. The income effect - With free trade suppose that the rest of the world can supply computers to Norway at a price of $1,500 Norway’s imports will now equal. Compared to What occurred in the absence of trade, Norway’s consumers surplus will _____ and its producer surplus will ____. Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper ?
A. 1,600 computers, decrease, increase
B. 1,600 computers, increase, decrease
C. 1,200 computers, decrease, increase
D. 1,200 computers, increase, decrease - If there is an increase in the price of apples which causes consumers to purchase fewer kilograms of apples and more kilograms of oranges, the CPI will suffer from ?
A. none of these answers
B. substitution bias
C. base year bias
D. bias due to unmeasured quality change
E. bias due to the introduction of new goods. - If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000 ?
A. The amount of tax paid will increase by Rs4,800
B. The amount of tax paid will increase by Rs4,000
C. The amount of tax paid will increase by Rs 800
D. The total tax paid will be Rs4,800 - If an increase in a consumer’s income causes the consumers to decrease her quantity demanded of a good, then the good is ?
A. a substitute good
B. a normal good
C. a complementary good
D. an inferior good
