BSNS 113 week 1- 7 Exam Questions With
Correct Answers
A |movement |ALONG |the |curve |is |caused |by? |- |CORRECT |ANSWER✔✔-A |change |in |price
Examples |of |things |that |SHIFT |the |demand |curve: |- |CORRECT |ANSWER✔✔--Income; |if |income |
increases, |qd |is |likely |to |increase |as |for |any |given |price |more |of |the |good |is |now |demanded
-Price |of |a |related |good |e.g. |compliments |and |substitutes |
-Tastes |or |preferences |e.g. |people |become |more |health |conscious
-Expectations |about |the |future |e.g. |people |fearful |about |losing |job
-Number |of |buyers |e.g. |more |tourists |in |qtown, |increase |in |demand |for |ice |cream |in |qtown
Qd= |f(function |of) |income, |price |of |related |goods, |preferences, |expectations, |no |of |buyers
What |is |a |'normal' |good? |- |CORRECT |ANSWER✔✔-A |good |for |which |things |being |equal |an |
increase |in |income |leads |to |an |increase |in |qd
What |is |an |inferior |good? |- |CORRECT |ANSWER✔✔-A |good |for |which |other |things |being |equal |
an |increase |in |income |leads |to |a |decrease |in |qd |e.g. |homebrand |products, |casket |wine
What |are |substitutes? |- |CORRECT |ANSWER✔✔-Two |goods |for |which |a |decrease |in |the |price |of
|one |good |leads |to |a |decrease |in |the |demand |for |the |other |e.g. |tea+coffee, |coke+pepsi, |
butter+marg
What |are |complements? |- |CORRECT |ANSWER✔✔-Two |goods |for |which |a |decrease |in |price |of |
one |good |leads |to |an |increase |in |the |demand |for |the |other
, As |price |rises |what |happens |to |the |QS? |- |CORRECT |ANSWER✔✔-It |increases, |as |they |can |
make |more |money |per |unit
What |is |marginal |cost? |- |CORRECT |ANSWER✔✔-The |cost |of |producing |one |more |good
What |causes |the |supply |curve |to |SHIFT? |- |CORRECT |ANSWER✔✔--changed |in |input |prices |e.g. |
sugar |to |make |ice |cream
-Changes |in |technology
-changes |in |expectations
-number |of |sellers
what |happens |to |supply |if |you |expect |the |price |of |ice |cream |to |be |higher |tomorrow? |- |
CORRECT |ANSWER✔✔-Store |some |ice |cream |today |to |sell |tomorrow |- |todays |supply |curve |will
|shift |left
If |the |number |of |selllers |for |ice |cream |increase |what |happens |to |the |market |supply |curve |for |
today? |- |CORRECT |ANSWER✔✔-Supply |increases |as |there |are |more |individual |supply |curves |to
|add |up
What |is |equilibrium? |- |CORRECT |ANSWER✔✔-Where |the |curves |intersect |and |S=D
If |demand |for |a |good |increases, |what |happens |to |price |and |supply? |- |CORRECT |ANSWER✔✔-
Price |will |increase |and |suppliers |will |supply |more |of |the |good |as |it |is |now |more |profitable |for |
them |to |do |so
If |there |is |an |increase |in |supply |or |demand |what |way |does |the |curve |shift? |- |CORRECT |
ANSWER✔✔-RIGHT
Correct Answers
A |movement |ALONG |the |curve |is |caused |by? |- |CORRECT |ANSWER✔✔-A |change |in |price
Examples |of |things |that |SHIFT |the |demand |curve: |- |CORRECT |ANSWER✔✔--Income; |if |income |
increases, |qd |is |likely |to |increase |as |for |any |given |price |more |of |the |good |is |now |demanded
-Price |of |a |related |good |e.g. |compliments |and |substitutes |
-Tastes |or |preferences |e.g. |people |become |more |health |conscious
-Expectations |about |the |future |e.g. |people |fearful |about |losing |job
-Number |of |buyers |e.g. |more |tourists |in |qtown, |increase |in |demand |for |ice |cream |in |qtown
Qd= |f(function |of) |income, |price |of |related |goods, |preferences, |expectations, |no |of |buyers
What |is |a |'normal' |good? |- |CORRECT |ANSWER✔✔-A |good |for |which |things |being |equal |an |
increase |in |income |leads |to |an |increase |in |qd
What |is |an |inferior |good? |- |CORRECT |ANSWER✔✔-A |good |for |which |other |things |being |equal |
an |increase |in |income |leads |to |a |decrease |in |qd |e.g. |homebrand |products, |casket |wine
What |are |substitutes? |- |CORRECT |ANSWER✔✔-Two |goods |for |which |a |decrease |in |the |price |of
|one |good |leads |to |a |decrease |in |the |demand |for |the |other |e.g. |tea+coffee, |coke+pepsi, |
butter+marg
What |are |complements? |- |CORRECT |ANSWER✔✔-Two |goods |for |which |a |decrease |in |price |of |
one |good |leads |to |an |increase |in |the |demand |for |the |other
, As |price |rises |what |happens |to |the |QS? |- |CORRECT |ANSWER✔✔-It |increases, |as |they |can |
make |more |money |per |unit
What |is |marginal |cost? |- |CORRECT |ANSWER✔✔-The |cost |of |producing |one |more |good
What |causes |the |supply |curve |to |SHIFT? |- |CORRECT |ANSWER✔✔--changed |in |input |prices |e.g. |
sugar |to |make |ice |cream
-Changes |in |technology
-changes |in |expectations
-number |of |sellers
what |happens |to |supply |if |you |expect |the |price |of |ice |cream |to |be |higher |tomorrow? |- |
CORRECT |ANSWER✔✔-Store |some |ice |cream |today |to |sell |tomorrow |- |todays |supply |curve |will
|shift |left
If |the |number |of |selllers |for |ice |cream |increase |what |happens |to |the |market |supply |curve |for |
today? |- |CORRECT |ANSWER✔✔-Supply |increases |as |there |are |more |individual |supply |curves |to
|add |up
What |is |equilibrium? |- |CORRECT |ANSWER✔✔-Where |the |curves |intersect |and |S=D
If |demand |for |a |good |increases, |what |happens |to |price |and |supply? |- |CORRECT |ANSWER✔✔-
Price |will |increase |and |suppliers |will |supply |more |of |the |good |as |it |is |now |more |profitable |for |
them |to |do |so
If |there |is |an |increase |in |supply |or |demand |what |way |does |the |curve |shift? |- |CORRECT |
ANSWER✔✔-RIGHT
