15 questions · 15 marks · ≈ 15 min
The table shows the sales of cold drinks made by a company in the UK in 2016 and 2017. Demand for cold drinks is influenced by changes in the temperature. In 2016 the sales followed the usual seasonal pattern.
| month | sales 2016 (thousand cans) | sales 2017 (thousand cans) |
|---|---|---|
| April May June July August | 300 400 550 570 620 | 290 350 270 490 590 |
In which month of 2017 was the usual pattern disturbed?
Choose your answer
May
June
July
August
A market consists of 10 individuals with different demand curves in a given period.
What is a calculation that could be used as part of the process to determine the market equilibrium in that period?
Choose your answer
at each price add the quantities demanded by each individual
at each quantity average the price that each individual is prepared to pay
combine the price elasticity of demand (PED) and the price elasticity of supply (PES) at each price
determine the PED and multiply it by the quantity demanded
The diagram shows the demand curve for coffee in the US.
Why did the quantity demanded move from Q1 to Q2?
Choose your answer
Coffee became cheaper.
Incomes rose in the US.
There was a successful advertising campaign by coffee retailers.
The price of substitutes for coffee rose.
What is the key distinction between individual demand and market demand?
Choose your answer
Individual demand reflects the demand of producers, while market demand reflects consumers
Individual demand is the sum of all consumers' demands, while market demand is the demand of a single consumer
Individual demand represents the quantity demanded by a single consumer, while market demand represents the sum of all consumers' quantities demanded
Individual demand and market demand are synonymous terms in economics
The table shows the demand schedule for a good at different prices.
| price $ | quantity demanded |
|---|---|
| 8 10 12 14 | 200 160 120 60 |
The current market price for the good is $10.
Following a 20% increase in price, what will be the change in the quantity demanded?
Choose your answer
– 60
– 40
+120
+200
Petrol (fuel) retailers in a country have noticed a sharp increase in sales in August when many people take their holidays.
Why might this take place?
Choose your answer
Consumers’ demand curve for petrol shifts to the left in August.
Consumers’ demand curve for petrol shifts to the right in August.
Oil refineries increase their output in August.
Travel companies increase their hotel prices in August.
In the context of market demand, what does the term "ceteris paribus" imply?
Choose your answer
Demand remains constant over time
All factors influencing demand change simultaneously
The price of the product is fixed
All factors influencing demand are held constant except for the price of the product
What term describes a change in the quantity demanded of a product due to a change in its own price, while other factors remain constant?
Choose your answer
Shift in demand
Elasticity of demand
Movement along the demand curve
Shift in supply
The diagram shows the demand for and the supply of air travel.
What could cause a shift of the demand curve from D1 to D2?
Choose your answer
an increase in airline costs
an increase in airport taxes
an increase in incomes
an increase in worldwide terrorism
Which factor can lead to an increase in the demand for a product?
Choose your answer
A decrease in consumer income
A decrease in the price of a substitute good
A decrease in the price of a complementary good
A decrease in production costs
What does a movement along the demand curve represent?
Choose your answer
Changes in consumer preferences
Shifts in the supply curve
Changes in the quantity demanded due to price changes
Changes in income levels
When the price of a product increases and the quantity demanded decreases, what is the outcome?
Choose your answer
A movement to the left along the demand curve
A movement to the right along the demand curve
A shift in the demand curve
No change in the demand curve
Which of the following is NOT a condition that can lead to a change in the demand for a product?
Choose your answer
Changes in consumer income
Changes in the price of related goods
Changes in consumer preferences and tastes
Changes in production technology
When the price of a product decreases, what is likely to happen along the demand curve?
Choose your answer
A shift to the left
A movement to the right
A movement upward
No change in position
When the price of a product decreases and leads to an increase in the quantity demanded, what type of movement along the demand curve is this called?
Choose your answer
Expansion of demand
Contraction of demand
Elastic demand
Inelastic demand