Micro Economics MCQ (GK Set-1) with Answers

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?

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?

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?

Answer is:

Price will increase; quantity will increase

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

Answer is:

decrease in demand.

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