Topic Questions (EASY): Demand and Supply Curves

Which of the following conditions must be met for demand for a good to be effective?

The consumer must have the ability to buy the product.

The consumer must have positive consumer surplus.

The good must be sold in the private sector of the economy.

There must be a successful advertising campaign.

Suppose a disease strikes the onion crop and new health benefits of consuming onions are discovered. The market for onions was initially in equilibrium. What combination of changes in demand and supply is consistent with these events?

demand: falls; supply: falls.

demand: falls; supply: rises.

demand: rises; supply: falls.

demand: rises; supply: rises.

Which of the following would not cause the demand curve for cars to shift to the right?

a fall in the price of petrol (gas)

a drop in the price of public transport

an advertising campaign by car manufacturers

an economy-wide rise in incomes

A publishing company that sells books has experienced a shift in its supply curve from S1 to S2. What would have caused this shift?

a decrease in government subsidies paid to book publishers

a decrease in the price of paper used for publishing books

an increase in the real income of customers who buy books

an increase in the wages of the publishing company's workers

What describes a market supply curve?

It is downward sloping.

It is the same as the aggregate supply curve.

It is the sum of all firms' supply curves for a product.

It is the supply of all products within an economy