Cork Institute of Technology
(Institiuid Teicneolaiochta Chorcai)
EC1010 – Introduction to Microeconomics
Section A and Section B
, Section A
A1.Which of the following will not cause a shift in the demand curve for good A?
(a) A change in the price of the good A itself;
(b) A change in the price of a close substitute for good A;
(c) A change in the price of a highly complementary good to A;
(d) A successful advertising campaign promoting the use of good A.
A2. A decrease in supply accompanied by an increase in demand, other
things being equal, will cause:
(a) Price to increase, with effect on quantity uncertain;
(b) Both price and quantity to decrease;
(c) Both price and quantity to increase;
(d) Quantity to decrease and the effect on price uncertain.
A3. If the prices of close substitutes for beer should rise dramatically and
nothing else changes, then:
(a) The demand for beer will increase;
(b) The supply of beer will increase;
(c) The demand for beer will fall;
(d) The demand for, and supply of, the close substitutes will fall.
A4. The price of apples will tend to fall if:
(a) There is a surplus at the prevailing price;
(b) The current price is above the equilibrium price;
(c) Quantity demanded is less than the quantity supplied at current prices;
(d) All of the above will cause the price of apples to fall.
A5. If at the same time as input prices fall the government raises the rate of
VAT charged on a product then:
(a) Supply will tend to decrease;
(b) Supply will tend to increase;
(c) There will be no affect on the supply as one will cancel out the other;
(d) The supply could either rise or fall depending on which is the
greater change
(Institiuid Teicneolaiochta Chorcai)
EC1010 – Introduction to Microeconomics
Section A and Section B
, Section A
A1.Which of the following will not cause a shift in the demand curve for good A?
(a) A change in the price of the good A itself;
(b) A change in the price of a close substitute for good A;
(c) A change in the price of a highly complementary good to A;
(d) A successful advertising campaign promoting the use of good A.
A2. A decrease in supply accompanied by an increase in demand, other
things being equal, will cause:
(a) Price to increase, with effect on quantity uncertain;
(b) Both price and quantity to decrease;
(c) Both price and quantity to increase;
(d) Quantity to decrease and the effect on price uncertain.
A3. If the prices of close substitutes for beer should rise dramatically and
nothing else changes, then:
(a) The demand for beer will increase;
(b) The supply of beer will increase;
(c) The demand for beer will fall;
(d) The demand for, and supply of, the close substitutes will fall.
A4. The price of apples will tend to fall if:
(a) There is a surplus at the prevailing price;
(b) The current price is above the equilibrium price;
(c) Quantity demanded is less than the quantity supplied at current prices;
(d) All of the above will cause the price of apples to fall.
A5. If at the same time as input prices fall the government raises the rate of
VAT charged on a product then:
(a) Supply will tend to decrease;
(b) Supply will tend to increase;
(c) There will be no affect on the supply as one will cancel out the other;
(d) The supply could either rise or fall depending on which is the
greater change
