400 likes | 513 Views
Demand And Supply test. This test consists of 10 questions designed to test your understanding of demand and supply theory The links provide you with a choice of answer, along with explanations and solutions. You will need a calculator to complete this test. Question 1.
E N D
Demand And Supply test This test consists of 10 questions designed to test your understanding of demand and supply theory The links provide you with a choice of answer, along with explanations and solutions. You will need a calculator to complete this test.
Question 1. The basic law of demand states? a. The lower the price the higher the quantity supplied b. The lower the price the lower the quantity demanded c. The lower the price the higher the quantity demanded
Question 2. A successful promotion campaign designed to increase brand loyalty is likely to : A. Make price elasticity of supply more elastic B. Make price elasticity of demand more inelastic C. Make price elasticity of demand more elastic
Question 3. Which of the following is likely to increase supply without an increase in price? A. Mass marketing campaign B. Technological advances C. Higher real incomes of consumers
Question 4. Which of the following is an elastic level of price elasticity of demand? A. 0.56 B. 1.0 C. 2.4
Question 5. Which of the following is likely to increase demand levels? • A fall in the price of a substitute B. A fall in the price of a compliment
Question 6. A fall in price of a good with price elasticity of demand of 2.2 will A. Increase revenues B. Leave revenues unchanged C. Decrease revenues
No, Try again
Question 7. An increase in real incomes will A. Lead to a less than proportional increase in demand for basic goods. B. Lead to a more than proportional increase in demand for luxury goods 1. Both 2. A only
Question 8. Which of the following are types of product are likely to have an inelastic Ped? A. Petrol B. Toilet Roll C. Water 1. A and B 2. B and C 3. All of the above.
Question 9. A firm with products priced at 10p increases price to 12p, Ped is 0.5. Quantity demanded will change by? • An increase of 20% • A fall of 20% C. A fall of 10%
Question 10. A firm increases price from 20p to 22p, revenue falls from £40,000 to £32,000. Ped is? A. 0.1 B. 4 C. 2