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Micro Economics
73

Micro Economics MCQ (GK Set-1) with Answers

73) A decrease (leftward shift) in the supply for a good will tend to cause

an increase in the equilibrium price and quantity.

a decrease in the equilibrium price and an increase in the equilibrium quantity.

a decrease in the equilibrium price and quantity

an increase in the equilibrium price and a decrease in the equilibrium quantity.

Answer is:

an increase in the equilibrium price and a decrease in the equilibrium quantity.

Micro Economics MCQ (GK Set-1) with Answers

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Related Micro Economics MCQ (GK Set-1) with Answers

74) Suppose there is an increase in both the supply and demand for personal computers. In the market for personal computers, we would expect

the equilibrium quantity to rise and the equilibrium price to rise

the equilibrium quantity to rise and the equilibrium price to remain constant

the change in the equilibrium quantity to be ambiguous and the equilibrium price to rise.

the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous

Answer is:

the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous

75) Suppose there is an increase in both the supply and demand for personal computers. Further, suppose the supply of personal computers increases more than demand for personal computers. In the market for personal computers, we would expect

the change in the equilibrium quantity to be ambiguous and the equilibrium price to fall.

the equilibrium quantity to rise and the equilibrium price to rise

the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous.

the equilibrium quantity to rise and the equilibrium price to fall

Answer is:

the equilibrium quantity to rise and the equilibrium price to fall

76) Which of the following statements is true about the impact of an increase in the price of lettuce?

Both the demand for lettuce will decrease and the equilibrium price and quantity of salad dressing will fall.

The supply of lettuce will decrease.

The demand for lettuce will decrease.

The equilibrium price and quantity of salad dressing will fall.

Answer is:

The equilibrium price and quantity of salad dressing will fall.

77) Suppose a frost destroys much of the Florida orange crop. At the same time, suppose consumer tastes shift toward orange juice. What would we expect to happen to the equilibrium price and quantity in the market for orange juice?

The impact on both price and quantity is ambiguous

Price will increase; quantity will increase

Price will increase; quantity will decrease.

Price will increase; quantity is ambiguous.

Answer is:

Price will increase; quantity is ambiguous.

Micro Economics MCQ (GK Set-1) with Answers

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