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    MCQ Price Theory

    Uploaded by

    abhilash k.b
    The document contains 12 multiple choice questions about price theory and the determinants of supply and demand. Key concepts covered include: - The law of demand which states that demand decreases when price increases. - Factors that cause a contraction or extension of demand such as changes in price, income, and availability of substitutes. - Joint demand between certain goods like tea and coffee. - How successful advertising led to increased demand for Dyson vacuum cleaners in Japan. - Examples of factors that shift the supply curve such as a sales tax, and factors that do not shift the demand curve such as changes in tastes. - Complementary goods that are often used together like buses and

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    MCQ Price Theory

    Uploaded by

    abhilash k.b
    750 views2 pages
    The document contains 12 multiple choice questions about price theory and the determinants of supply and demand. Key concepts covered include: - The law of demand which states that demand decreases when price increases. - Factors that cause a contraction or extension of demand such as changes in price, income, and availability of substitutes. - Joint demand between certain goods like tea and coffee. - How successful advertising led to increased demand for Dyson vacuum cleaners in Japan. - Examples of factors that shift the supply curve such as a sales tax, and factors that do not shift the demand curve such as changes in tastes. - Complementary goods that are often used together like buses and

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    multiple choice questions on demand supply and market equilibrium

    Original Title

    Mcq Price Theory

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    The document contains 12 multiple choice questions about price theory and the determinants of supply and demand. Key concepts covered include: - The law of demand which states that demand decreases when price increases. - Factors that cause a contraction or extension of demand such as changes in price, income, and availability of substitutes. - Joint demand between certain goods like tea and coffee. - How successful advertising led to increased demand for Dyson vacuum cleaners in Japan. - Examples of factors that shift the supply curve such as a sales tax, and factors that do not shift the demand curve such as changes in tastes. - Complementary goods that are often used together like buses and

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    750 views2 pages

    MCQ Price Theory

    Uploaded by

    abhilash k.b
    The document contains 12 multiple choice questions about price theory and the determinants of supply and demand. Key concepts covered include: - The law of demand which states that demand decreases when price increases. - Factors that cause a contraction or extension of demand such as changes in price, income, and availability of substitutes. - Joint demand between certain goods like tea and coffee. - How successful advertising led to increased demand for Dyson vacuum cleaners in Japan. - Examples of factors that shift the supply curve such as a sales tax, and factors that do not shift the demand curve such as changes in tastes. - Complementary goods that are often used together like buses and

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    MCQ PRICE THEORY MCQ PRICE THEORY

    1.Llaw of demand states that 7.Extension of demand is the result of:


    A increase in price increases the demand A decrease in the number of substitutes
    B decrease in price increase the demand B decrease in the price of the commodity concerned
    C decrease in price decrease demand C Increase in the price of other goods
    D decrease in the income increase the demand D decrease in the income of consumers

    2. Contraction of demand is the result of: 8.Which of the following goods are in joint demand?
    A decrease in the number of consumers A Tea and coffee B Gas and Electricity
    B increase in the price of commodity concerned C Camera and film D Pepsi and coca cola
    C increase in the price of other goods
    D decrease in the income of consumers 9.In 2004, Dyson, a UK company, launched a luxury version of its vacuum
    cleaner in Japan. Within two years, it became the top-selling vacuum
    3. Other things being equal a decrease in demand is caused by cleaner in the country. What could have caused this increase in demand?
    A a fall in the income of the consumer A a fall in the population of Japan
    B a rise in the price of the commodity B a fall in the price of alternative vacuum cleaners in Japan
    C a rise in the price of the substitute C rising levels of unemployment in Japan
    D a favourable weather condition D successful advertising of Dyson vacuum cleaners in Japan

    4. Which of the following would cause the demand curve for a good 10. Four changes affecting the supply of a good are listed below.
    to shift to the left? Which would cause the supply curve to shift to the left?
    A A rise in the price of the good A a decrease in its market price B an improvement in technology
    B An increase in the supply of the good C an increase in labour productivity D the introduction of a sales tax
    C A decrease in the price of a substitute good
    D A decrease in the tax imposed by the government on the good. 11.What would not cause a shift in the demand curve for a good?
    A a change in incomesB a change in the price of a substitute good
    5.Which one of the following is an example of complementary good?
    A car and petrol B bread and rice C a change in the price of the goodD a change in the tastes of consumers
    C milk and Milo D butter and margarine.
    12. What is an example of complementary demand?
    6.Which of the following goods are in joint supply? A buses and bus fares B cotton and cotton seed
    A Tea and coffee B Gas and electricity C televisions and electricity D wood and sawdust
    C Wool and lamb D Pepsi and coca cola

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