Economics Past Questions and Answers

Given a market demand curve Q=120-2p and a supply curve Q = 4p, the equilibrium price and quantity respectively are?

A 20 and 80
B 30 and 120
C 40 and 60
D 60 and 240

Question 1307:

If a demand curve that intersects a perfectly inelastic supply curve shifts rightward, then?

A The equilibrium price and quantity will increase
B Only the price will increase
C Only the quantity will increase
D The price will remain constant

Question 1308:

The elasticity of demand for a firm's product is 2.
If the firm reduces its price by 20 percent, its sales revenue will increase by?

A 10 per cent
B 20 per cent
C 30 per cent
D 40 per cent

Question 1309:

If the percentage change in the income of the consumers of an industrial product is less than the resulting percentage change in the quantity demanded of the product, then the income elasticity of demand for the product is?

A Less than one
B Equal to one
C Greater than one
D Equal to zero

Question 1310:

A market where there are many differentiated products is called?

A Monopoly
B Perfect competition
C Monopolistic competition
D Oligopoly