COBA EXAM 2020 LATEST UPDATED WITH 100%
CORRECT AND VERIFIED ANSWERS
X and Y are substitute products. If the price of
product Y increases, the immediate impact on
the product X is that its
A) Price will increase
B) Quantity demanded will increase
C) Quantity supplied will increase
D) Price, quantity demanded and supplies will
increase - answer-B) Quantity demanded will
increase
If the average household income increases and
there is relatively little change in the price of a
normal good then
A) Supply curve will shift to the left
B) Quantity demanded will move farther down
the demand curve
,C) Demand will shift to the left
D) Demand will shift to the right - answer-D)
Demand will shift to the right
The demand curve for a normal good is
A) Upward sloping because firms produce
more at higher prices
B) Upward sloping because higher-priced
goods are of higher quality
C) Vertical
D) Downward sloping because of the income
and substitution effects of price changes -
answer-D) Downward sloping because of the
income and substitution effects of price
changes
A decrease in the price of a complementary
good will
A) Shift the demand curve of the other
commodity to the left
,B) Increase the price paid for a substitute good
C) Shift the supply curve of the other
commodity to the left
D) Shift the demand curve of the other
commodity to the right - answer-D) Shift the
demand curve of the other commodity to the
right
Which one of the following changes will cause
the demand curve for gasoline to shift to the
left
A) The price of gasoline increases
B) The supply of gasoline decreases
C) The price of cars increase
D) The price of cars decrease - answer-C) The
price of cars increase
Tennis rackets and tennis balls are
A)Substitute goods
, B) Independent goods
C) Inferior goods
D) Complementary goods - answer-D)
Complementary goods
A supply curve illustrates the relationship
between
A) Price and quantity supplied
B)Price and consumer tastes
C) price and quantity demanded
D) Supply and demand - answer-A) Price and
quantity supplied
In relation to the laws of supply and demand,
an increase in supply will
A) Increase the equilibrium price and the
equilibrium quantity exchanged
B) Decrease the equilibrium price and the
equilibrium quantity exchanged
CORRECT AND VERIFIED ANSWERS
X and Y are substitute products. If the price of
product Y increases, the immediate impact on
the product X is that its
A) Price will increase
B) Quantity demanded will increase
C) Quantity supplied will increase
D) Price, quantity demanded and supplies will
increase - answer-B) Quantity demanded will
increase
If the average household income increases and
there is relatively little change in the price of a
normal good then
A) Supply curve will shift to the left
B) Quantity demanded will move farther down
the demand curve
,C) Demand will shift to the left
D) Demand will shift to the right - answer-D)
Demand will shift to the right
The demand curve for a normal good is
A) Upward sloping because firms produce
more at higher prices
B) Upward sloping because higher-priced
goods are of higher quality
C) Vertical
D) Downward sloping because of the income
and substitution effects of price changes -
answer-D) Downward sloping because of the
income and substitution effects of price
changes
A decrease in the price of a complementary
good will
A) Shift the demand curve of the other
commodity to the left
,B) Increase the price paid for a substitute good
C) Shift the supply curve of the other
commodity to the left
D) Shift the demand curve of the other
commodity to the right - answer-D) Shift the
demand curve of the other commodity to the
right
Which one of the following changes will cause
the demand curve for gasoline to shift to the
left
A) The price of gasoline increases
B) The supply of gasoline decreases
C) The price of cars increase
D) The price of cars decrease - answer-C) The
price of cars increase
Tennis rackets and tennis balls are
A)Substitute goods
, B) Independent goods
C) Inferior goods
D) Complementary goods - answer-D)
Complementary goods
A supply curve illustrates the relationship
between
A) Price and quantity supplied
B)Price and consumer tastes
C) price and quantity demanded
D) Supply and demand - answer-A) Price and
quantity supplied
In relation to the laws of supply and demand,
an increase in supply will
A) Increase the equilibrium price and the
equilibrium quantity exchanged
B) Decrease the equilibrium price and the
equilibrium quantity exchanged
