Question

1. Which of the following factors influences people's purchasing plans and does not shift the curve

of demand?

a) The price of the good

b) The price of related goods

c) Income

d) Preferences

2. Ham and eggs are complements. If the price of ham increases, the demand for eggs:

a) will increase or decrease, but the demand curve for ham will not change.

b) it will decrease, and the demand curve for ham will shift to the right.

c) does not change, but there will be a movement along the egg demand curve.

d) decrease, and the egg demand curve will shift to the left.

3. Pancakes and granola bars are substitutes for consumption. If the price of a granola bar

increases, then the demand for ...

a) The granola bars will increase, that is, the demand curve will move towards the

right.

b) Pancakes will increase, that is, the demand curve will shift to the right.

c) The granola bars will decrease, that is, the demand curve will shift to the left.

d) Pancakes will decrease, that is, the demand curve will shift to the left.

4. Suppose the price of the steel used to produce automobile engines increases. How

Does this price increase affect the demand curve for automobiles?

a) The demand curve shifts to the left.

b) The demand curve shifts to the right.

c) The demand curve does not change.

d) There is not enough information to determine how the change changes the demand curve for

automobiles.

5. Suppose that beef is a normal good and that people's incomes decrease. The same

In time, an excellent corn harvest reduces the cost of feeding steers. These changes

result in

a) An increase in the equilibrium amount of beef.

b) An increase in the equilibrium quantity of beef if the change in the demand curve

it is less than the change in the supply curve.

c) An increase in the equilibrium quantity of meat if the change in the demand curve is

greater than the change in the supply curve.

d) No change in the balance amount of beef.

D.R Instituto Tecnológico y de Estudios Superiores de Monterrey, México. two

1017 - Business economics

6. Which of the following statements is correct?

a) When demand and supply increase, quantity decreases and price can increase,

fall or stay the same.

b) When demand and supply increase, the price increases and the quantity can increase,

decrease or stay the same.

c) When demand and supply decrease, the quantity increases and the price can increase,

fall or stay the same.

d) When both demand and supply decrease, the quantity decreases and the price can

increase, fall or remain the same.

7. The price will increase and the equilibrium quantity could increase, decrease or remain the same when

a) The demand and supply of a good increase.

b) The demand for a good increases and its supply decreases.

c) The demand for a good decreases and the supply increases.

d) The demand and supply of a good decrease.

8. Correctly complete the following by selecting the only correct answer option.

Suppose flights to Paris are a normal good and people's incomes increase. The same

Over time, the price of jet fuel rises. The balance price of a flight to Paris

________ and the balance amount of flights to Paris ________.

a) it can rise, fall or not change; increases

b) falls; decreases

c) go up; increases

d) goes up; could increase, decrease or not change

9. Correctly complete the following by selecting the only correct answer option.

Suppose that, in the orange market, the demand and supply of oranges decrease in the same

quantity.

The equilibrium quantity ________ and the equilibrium price ________.

a) will decrease; will not change

b) will decrease; will fall

c) will remain the same; can go up or down

d) will remain the same; get on

10. What will happen to the equilibrium price and quantity of coffee if it is discovered that it helps

prevent colds and at the same time Brazil and Vietnam emerge in the global market as massive

coffee producers?

a) The price will fall and the effect on the quantity is uncertain.

b) The quantity will increase and the effect on the price is uncertain.

c) The quantity will decrease and the price will increase.

d) The quantity will increase and the price will remain unchanged.

Answer 1