Section A- Multiple Choice Questions
When the monetary value of gas rises by 25 % , the measure purchased falls by 10 % . This means that the demand for gas is ( a ) . Inelastic to monetary value alterations
( B ) . Absolutely inelastic to monetary value alterations
( degree Celsius ) . Elastic to monetary value alterations
( vitamin D ) . Absolutely elastic to monetary value alterations
The demand for a good is inelastic if:
( a ) . when the monetary value rises, quantity demand rises
( B ) when the monetary value rises, entire gross falls
( degree Celsius ) When the monetary value rises, entire gross rises
( vitamin D ) when the monetary value rises measure demanded falls.
Ceteris paribus, a lessening in the demand for furniture will take to:
Increased monetary value and reduced measure supplied
Decreased monetary value and reduced measure supplied
Decreased monetary value and no alteration in measure supplied
Increased monetary value and no alteration in measure supplied
If the Petroleum Cartel ( OPEC ) is expected to cut production of petroleum, what will go of the market equilibrium for petroleum?
Monetary values will fall, measures will increased
Monetary values will increased, measures will increased
Monetary values and measures will stay the same
Monetary values will increase, measures will diminish
During Easter, many consumers buy fish alternatively of poulet. This means that the demand for fish:
Shifts to the left
Shifts to the right
The monetary value snap of demand measures the reactivity of measure demanded for good Ten to:
Measure demanded for good Yttrium
A alteration in the monetary value of good Ten
A alteration in the end product of good Ten
Which of the followers will do an enlargement in the supply of poulet?
A autumn in the monetary value of beef
A rise in the monetary value of poulet
A rise in vegetarianism
A rise in the monetary value of poulet provender
Which of the following would do a displacement of the supply curve for Mangifera indicas to the left?
A rise in the monetary value of apples
A successful advertisement run for pick
A decrease in the EU subsidies to fruit agriculturists
An addition in the entire Numberss of consumers of Mangifera indicas
The demand curve for a normal good displacements to the left when:
The monetary value of the good itself rises
The monetary value of complements rises
The monetary value of replacements rises
An indirect revenue enhancement is imposed on the good
Which of the followers is non held changeless when a demand curve is drawn?
The monetary value of the good itself
Households ‘ existent income
The monetary value of viing goods
The monetary value of complementary goods
Given the supply and demand map:
QD = 100 – 20p
QS = 10 + 40p
Price ( P )
Measure Demanded ( QD )
Measure Supplied ( QS )
Use the information in the above tabular array to:
Calculate the equilibrium monetary value. ( 3 Markss )
Calculate the equilibrium measure demanded and measure supplied and show the information diagrammatically. ( 6 Markss )
With the assistance of a diagram, explain the difference between a displacement in the supply and a motion along the supply curve. ( 6 Markss )
Explain four ( 4 ) factors that cause the demand curve to switch for a coral phone. ( 6 Markss )
Shift in Supply vs. Movement along the Supply Curve.
If one of the determiner of monetary value alterations it causes the supply curve to switch but if none of the determiners other than monetary value alterations causes a motion along the supply curve.
These other determiners are:
Cost of production
Profitableness of related merchandises
Profitableness of goods in joint supply
Nature and other unpredictable events
Expectations future monetary value alterations.
The difference between a motion along the supply curve and a displacement of the supply curve is normally distinguished between a alteration in supply and a alteration in measure supplied.
If the other determiners of supply causes supply to lift the supply curve will switch to the right. The new curve ( S1 ) shows that each monetary value more Oxford pencils will be supplied.
If the other determiners cause supply to fall, the supply curve will switch to the left. The new curve ( S2 ) shows that at each monetary value less Oxford pencils will be supplied.
Factors that Cause the demand Curve to switch for a coral phone.
Four ( 4 ) factors that cause the demand curve to switch for a coral phone are:
Income available to the family
Income is the payment or the amount of all the rewards, wages, net incomes, involvement payments, rents received and all other signifiers of gaining in a given period of clip.
Monetary values of other goods and services available.
The monetary value of one good can impact the monetary value of others. These are goods that replacement or complement one another. The replacement goods are used as a replacing for others. When the monetary value of one good additions, the demand for the other good goes up.
The complementary goods are the goods that accompany each other or ‘go together ‘ such as Eggs and bacon, akee and saltfish. When the monetary value of one good additions, the demand for the other goes down and frailty versa.
The families gustatory sensation and penchants.
The gustatory sensations and penchant of the family can act upon their demand for certain Gods, so they can take what to purchase and how much to purchase.
The Household ‘s outlooks about future income, wealth and monetary values.
The family will do picks to consumer certain goods based on their outlooks about their expected place in the hereafter and the hereafter alterations in monetary values.