Supply Curve and Changes in Demand: Chapter 3 Economics Quiz
7 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following factors can lead to a simultaneous shift in supply and demand?

  • A recession affecting both buyers and sellers. (correct)
  • Decrease in income for normal goods.
  • Increase in the price of substitutes.
  • Complementary goods becoming more affordable.

    • What happens when supply and demand both increase or decrease?

  • Price remains constant but quantity traded decreases.
  • Price decreases but quantity traded increases.
  • Only price increases, while quantity traded remains constant.
  • Price and quantity traded both increase. (correct)

    • Which type of goods see a decrease in demand as income rises?

  • Inferior goods. (correct)
  • Complementary goods.
  • Normal goods.
  • Substitute goods.

    • What is the outcome when supply increases but demand decreases?

    <p>Price increases but quantity traded decreases.</p> Signup and view all the answers

    What is one of the determinants of price elasticity of demand mentioned in the text?

    <p>Substitution possibilities</p> Signup and view all the answers

    How does the budget share affect the incentive to look for substitutes when the price of an item rises?

    <p>It increases the incentive</p> Signup and view all the answers

    Which concept represents the percentage change in quantity demanded in response to a 1 percent change in income?

    <p>Income elasticity</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser