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Micro Economics
76

Micro Economics MCQ (GK Set-1) with Answers

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.

Micro Economics MCQ (GK Set-1) with Answers

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

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.

78) Suppose consumer tastes shift toward the consumption of apples. Which of the following statements is an accurate description of the impact of this event on the market for apples?

There is an increase in the demand and supply of apples

There is an increase in the demand for apples and a decrease in the supply of apples.

There is a decrease in the quantity demanded of apples along its demand curve and an increase in the supply for apples.

There is an increase in the demand for apples and an increase in the quantity supplied of apples along the supply curve

Answer is:

There is an increase in the demand for apples and an increase in the quantity supplied of apples along the supply curve

79) Suppose both buyers and sellers of wheat expect the price of wheat to rise in the near future. What would we expect to happen to the equilibrium price and quantity in the market for wheat today?

Price will decrease; quantity is ambiguous.

Price will increase; quantity will decrease

Price will increase; quantity is ambiguous.

Price will increase; quantity will increase

Answer is:

Price will increase; quantity will increase

80) An inferior good is one for which an increase in income causes a(n)

decrease in supply.

increase in demand

increase in supply.

decrease in demand.

Answer is:

decrease in demand.

Micro Economics MCQ (GK Set-1) with Answers

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