15 questions · 15 marks · ≈ 15 min
A large amount of the agricultural products in a country were damaged by floods.
What is likely to have happened to the price of agricultural products and the volume of imports of agricultural products?
| price of products | volume of imports | |
|---|---|---|
| A B C D | fall fall rise rise | fall rise fall rise |
Choose your answer
What happens to the market for umbrellas when it starts raining?
Choose your answer
Demand decreases
Demand increases
Supply decreases
Supply increases
If consumer incomes increase, what effect might this have on the equilibrium price and quantity of cinema tickets?
Choose your answer
Equilibrium price increases, equilibrium quantity decreases
Equilibrium price decreases, equilibrium quantity decreases
Equilibrium price increases, equilibrium quantity increases
Equilibrium price remains unchanged, equilibrium quantity increases
If a technological advancement reduces the cost of production for a product, what is likely to happen to its equilibrium price and quantity?
Choose your answer
Equilibrium price decreases, quantity decreases
Equilibrium price increases, quantity decreases
Equilibrium price decreases, quantity increases
Equilibrium price increases, quantity increases
Suppose the price of a complementary good decreases. How would this likely affect the equilibrium price and quantity of the main product?
Choose your answer
Equilibrium price would increase, quantity would decrease
Equilibrium price and quantity would both increase
Equilibrium price would decrease, quantity would increase
Equilibrium price and quantity would both decrease
In 2018 the UK government introduced a tax on the production of sugary drinks. How would this affect the market for sugary drinks as shown on a demand and supply diagram?
| demand curve for sugary drinks | supply curve of sugary drinks | |
|---|---|---|
| A B C D | contraction in demand extension in demand shift to the left shift to the right | shift to the left shift to the right contraction in supply extension in supply |
Choose your answer
The table shows the quantity demanded and supplied for a commodity at different prices.
| price ($) | quantity demanded | quantity supplied |
|---|---|---|
| 10 9 8 7 6 | 100 210 400 500 600 | 800 700 600 500 400 |
What would happen to the equilibrium price if the quantity supplied increased by 200 units at each price?
Choose your answer
It would decrease by $1.
It would decrease by $2.
It would increase by $1.
It would increase by $2.
If a substitute good becomes more expensive, what effect does this have on the equilibrium price and quantity of the original good?
Choose your answer
Equilibrium price decreases, quantity decreases
Equilibrium price increases, quantity increases
Equilibrium price increases and the quantity decreases
Equilibrium price decreases and quantity increases
What effect does an increase in the number of suppliers have on the equilibrium price and quantity of a product?
Choose your answer
Equilibrium price decreases, quantity increases
Equilibrium price increases, quantity decreases
Equilibrium price and quantity both decrease
Equilibrium price and quantity both increase
In 2019 the Malaysian government increased a per litre subsidy on the production of petrol. How would this affect the market for petrol as shown on a demand and supply diagram?
| demand curve for petrol | supply curve of petrol | |
|---|---|---|
| A B C D | extension in demand contraction in demand shift to the left shift to the right | shift to the right shift to the left contraction in supply extension in supply |
Choose your answer
The diagram shows the global market for copper with an equilibrium point of X.
Which point represents the new equilibrium after the copper producers’ costs increase and there is rapid global economic growth?
Choose your answer
The diagram shows the market for a firm making clothing with an initial equilibrium of X.
What will be the new equilibrium if there is a successful advertising campaign by a rival firm and an increase in workers’ wages?
Choose your answer
In 2015, the world price of oil fell rapidly due to changes in the conditions of demand and supply. One change was the use of a new method of extraction called fracking.
Which event would not have contributed to the fall in prices?
Choose your answer
China’s growth slowed leading to lower oil imports.
Saudi Arabia increased the volume of its oil supplies.
UK protest groups prevented the introduction of fracking projects.
USA became more self-sufficient in oil due to fracking and reduced imports.
The diagram shows the market for sugar in Singapore with an equilibrium point of X.
Which point represents the new equilibrium after the government legislates that fizzy drinks have to halve their sugar content and two of the three sugar manufacturers decide to leave the market?
Choose your answer
The diagram shows the market for a firm making electric vehicles with an initial equilibrium at X.
What will be the new equilibrium if there is an increase in the government subsidy for electric vehicles and a 40% increase in the cost of petrol?
Choose your answer