Multiple choice problems on fluctuations of gasoline price also demand supply factors
Gasoline prices going up (again). In "economic" terms,
1.The law of supply states which, other things equal:
a.as the price of a good goes down, the quantity supplied goes up.
b.as the price of a good goes up, the supply goes down.
c.as the price of a good goes up, the quantity supplied goes up.
d.as the price of a good goes down, the supply goes down.
2.Which of the following is a shift factor of demand:
a.The prices of other goods
c. The prices of inputs used in the production of a good
3.According to the law of demand an increase in the price of gasoline will:
a. increase the quantity demanded of gasoline, other things constant.
b. decrease the quantity demanded of gasoline, other things constant
c. increase the demand for gasoline.
d. decrease the demand for gasoline.
4.We would speak of a movement along the demand curve, rather than of a shift in demand, if:
a.price of which good rose.
d.prices of other goods changed.
5.Which of the following is a shift factor of supply?
a. Society's Income
b. Suppliers' expectations
c. Income Taxes
d. Tastes also preferences
6.Suppose an economy experienced an increase in technology. The new equilibrium price will be ___________ also the new equilibrium quantity will be _________________.
a. higher, higher
b. lower, lower
7.A tariff (tax on imports) will usually _________________ price also ______________ quantity.
8.The more substitutes a good has
a.The more inelastic is its demand
b.The more elastic is its demand
c.The more unit elastic is its demand
d.The less elastic is its demand
9.Whenever a demand curve is perfectly vertical, it is
10.If the price of a good goes down by 5% also in response the quantity demanded rises by 15%, the price elasticity of demand is:
11. Which of the following describes the relationship between total revenue also elasticity of demand?
a.Whenever elasticity of demand is greater than 1, total revenue will fall Whenever price rises.
b.Whenever elasticity of demand is less than 1, total revenue will fall Whenever price rises.
c.Whenever elasticity of demand is greater than 1, total revenue will rise Whenever price rises.
d.Whenever elasticity of demand is less than 1, total revenue will not change Whenever price rises.