A. Price increase demand decreases
B. Price decreases demand decreases
C. Price increased demand increases
D. None of these
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 - 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 - Suppose that the demand curve for tin is highly inelastic. If the supply curve of tin decrease and increase cyclically along the demand curve for tin then in this market the size of the price fluctuation will be __________ the size of the quantity fluctuations?
A. relatively greater then
B. relatively less than
C. the same as
D. any of the above - The kinked demand curve model of oligopoly assumes the elasticity of demand ?
A. in response to a price increase is less elastic than the elasticity of demand in response to a price decrease
B. is perfectly elastic if price increases and perfectly inelastic if price decreases
C. is constant regardless of whether price increase of decrease.
D. in response to a price increases is more elastic than the elasticity of demand in response to a price decrease - Suppose there is an increase in the both the supply and demand for personal computers Further, suppose the supply of personal computer increase more than demand for personal computers In the market for personal computers i the market for personal computers, we would expect ?
A. the change in the equilibrium quantity to be ambiguous and the equilibrium price to fall.
B. the equilibrium quantity to rise and the equilibrium price to rise
C. the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous
D. the equilibrium quantity to rise and the equilibrium price to fall
E. the equilibrium quantity to rise and the equilibrium price to remain constant - 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. - The demand for ice-cream is lower outside of summer causing lower demand for ice-cream salesman if they cannot find other work, this is called _______ unemployment?
A. Regional
B. structural
C. seasonal
D. demand-deficient - Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?
A. The upward accelerator
B. The downward multiplier
C. The upward PPF
D. The downward mpc - In a supply and demand diagram for Japanese yen, with the exchange rate in dollars per yen on the vertical axis, the demand schedule for yen is drawn sloping ?
A. upward
B. vertical
C. downward
D. horizontal - If demand is linear (a straight line) then price elasticity of demand is ?
A. elastic in the upper portion and inelastic in the lower portion
B. inelastic in the upper portion and elastic in the lower portion
C. inelastic throughout
D. constant along the demand curve
