Professional Documents
Culture Documents
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An increase in the quantity of tea demanded
occurs whenever
A) the population of tea drinkers grows.
B) the price of coffee (its substitutes) rise.
C) tea drinkers receive an increase in their
incomes.
D) the price of lemons (its complement) falls.
E) the price of the tea falls.
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Exercise 2.2
Which of the following would result in a
decrease in the supply of computers?
A) An increase in the wage of workers in the
computer industry.
B) An improvement in the technology of
producing computers.
C) An increase in consumers preference in
internet surfing.
D) An increase in consumers' incomes.
E) An increase in the number of producer of
computers.
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Exercise 2.3
Which of the following will NOT cause a
shift in the demand curve for rice?
A) Consumers have a stronger preference
in consuming rice.
B) A decrease in the price of vegetables (a
complement to rice).
C) An increase in the price of rice.
D) A decrease in the price of noodle (a
substitute to rice).
E) An increase in consumers' incomes.
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Exercise 2.4
What happens to the demand curve of
bread when:
(1) The consumers income increases?
(2) There is a decrease in the price of
biscuits, its main substitutes?
(3) The price of flour (the raw materials
in making bread) increases?
Exercise 2.5
What happen to the supply curve of car when:
(1) The workers in the car industry
successfully demanded a higher wage?
(2) Many producers leave the industry due to
poor prospects?
(3) There is an increase in the price of petrol?
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Exercise 2.6
Evaluate whether the following statement is true or
false, justify your answer.
(i)
An increase in price results in increase in
supply but not an increase in the quantity
supplied.
(ii)
An improvement in technology will shift
the goods supply curve rightward.
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