84-Market_Demand_Supply_Key

84-Market_Demand_Supply_Key - Student Name: 12 August 2010...

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Student Name: 12 August 2010 Total Possible Marks: 30 Market Supply and Demand and Equilibrium Prices Complete in pen or pencil and hand into your teacher when ready. Each multiple choice question carries one mark. Select one answer only. Market demand and supply 1 1. The following might influence the demand for a good. Which would n o t cause a shift in the demand curve for the product? A. a change in the price of a complement B. a change in the price of the good itself C. a change in the price of a substitute D. a change in consumers’ incomes 1 2. A fall in the price of online music downloads from sites such as iTunes and growing popularity for services such as Spotify results in a fall in the demand for music CDs. This result implies that these products are A. Are in joint demand B. Are in joint supply C. Are produced by business involved in a cartel D. Are substitute products 1 3. A major determinant of demand in one particular market would be A. the technique of production B. the number of sellers in the market C. the incomes of buyers in that market D. the cost of raw materials 1 4. Which of the following will result in a shift in the demand curve for motorcycles? A. a subsidy paid to producers of motorcycles B. higher raw material and component prices in the production of motorcycles C. falling petrol and diesel prices D. higher motorcycle prices 1 5. Which of the following would shift the supply curve for housing in Glasgow to the right? A. an increase in mortgage interest rates B. the release of more land for housing development in the suburbs around Glasgow C. an increase in the cost of construction materials D. an increase in speculative demand for properties in Glasgow - 1 - 12/08/2010
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- 2 - 12/08/2010 1 6. Joint supply is where an increase in A. Demand for one good leads to an increase in the demand for another B. Higher production of one good leads to a decrease in the output of another C. Extra production of one good leads to an increase in output of another D. Higher demand for one good leads to a decrease in demand for another 1 7. Unfavourable climatic conditions in the major fruit-growing areas in Spain are most likely to lead to A. an increase in demand for fruit and increased prices
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84-Market_Demand_Supply_Key - Student Name: 12 August 2010...

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