Econ Post Test Quick Questions And
Answers Verified 100% Correct
If the price of peanut butter were to increase, what would likely happen to the demand
for jelly? - ANSWER The demand for jelly would decrease—the demand curve would
shift left
If good A is considered to be an inferior good, when incomes rise: - ANSWER The
demand for good A will decrease and the demand curve will shift to the left.
If the government imposes a tax on the production of a good or service, what will
happen to the equilibrium price and quantity of the good - ANSWER Equilibrium price
will increase and equilibrium quantity will decrease
A decrease in the price of a good would be illustrated on a supply graph as a: -
ANSWER Movement along the supply curve downward.
A government-imposed price floor, above equilibrium price, in the market for a good or
service will result in: - ANSWER A surplus of the good or service
An increase in the average income of consumers will result in: - ANSWER
An increase in the demand for goods and services
According to the law of supply, if the price of a good or service increases: - CORRECT
ANSWER Quantity supplied will increase.
An improvement in technology used by producers of a certain good will result in: -
ANSWER an increase in the supply of the good
When the price of good A rises, people start to drink good B. In this case. - CORRECT
ANSWER Good B is a substitute good.
An increase in the price of a good would be illustrated on a demand graph as a: -
ANSWER Movement along the demand curve upward.
If the number of consumers in the market for good A increases, what will happen to the
equilibrium price and quantity of good A? - ANSWER Equilibrium price and
quantity will both increase
Answers Verified 100% Correct
If the price of peanut butter were to increase, what would likely happen to the demand
for jelly? - ANSWER The demand for jelly would decrease—the demand curve would
shift left
If good A is considered to be an inferior good, when incomes rise: - ANSWER The
demand for good A will decrease and the demand curve will shift to the left.
If the government imposes a tax on the production of a good or service, what will
happen to the equilibrium price and quantity of the good - ANSWER Equilibrium price
will increase and equilibrium quantity will decrease
A decrease in the price of a good would be illustrated on a supply graph as a: -
ANSWER Movement along the supply curve downward.
A government-imposed price floor, above equilibrium price, in the market for a good or
service will result in: - ANSWER A surplus of the good or service
An increase in the average income of consumers will result in: - ANSWER
An increase in the demand for goods and services
According to the law of supply, if the price of a good or service increases: - CORRECT
ANSWER Quantity supplied will increase.
An improvement in technology used by producers of a certain good will result in: -
ANSWER an increase in the supply of the good
When the price of good A rises, people start to drink good B. In this case. - CORRECT
ANSWER Good B is a substitute good.
An increase in the price of a good would be illustrated on a demand graph as a: -
ANSWER Movement along the demand curve upward.
If the number of consumers in the market for good A increases, what will happen to the
equilibrium price and quantity of good A? - ANSWER Equilibrium price and
quantity will both increase
