1.When demand is __________, how will reducing prices affect consumer expenditure?
2.What is the effect of a rise in import expenditures on the aggregate demand curve?
3.How would raising unemployment benefits and reducing the motivation to work affect the aggregate supply curve?
4.Which factor would lead to a reduction in aggregate demand?
5.When does a rise in aggregate demand primarily impact prices the most?
6.What is the likely effect of a shift in the aggregate supply curve?
7.If the price rises from 25 pence to 30 pence and the quantity supplied increases from 40 units to 44 units, what is the price elasticity of supply?
8.What is the effect on supply when the price rises, assuming all other factors remain constant?
9.When does a contraction in supply take place?
10.Under which condition is the supply curve expected to be more responsive to price changes?
11.Which statement most accurately defines a supply curve?
12.Which of the following correctly describes the elasticities associated with an inferior good?
13.If the price rises from 10 pence to 12 pence and the price elasticity of demand is -0.5, what is the new quantity demanded given that the original quantity was 500 units?
14.If the income elasticity of demand is +2 and income rises by 20%, what will be the new sales volume given the initial sales were 5,000 units?
15.What happens to total revenue when the price elasticity of demand equals one and the price decreases?
16.If the average annual income rises from Rs 20,000 to Rs 22,000 and the yearly quantity demanded increases from 5,000 to 6,000 units, which statement is accurate?
17.What characterizes the demand for a Veblen good?
18.What is the effect on the demand for product A if the price of its complementary good rises?
19.What does it indicate when marginal utility equals zero?
20.Under which circumstance would the demand curve for a normal good shift to the right?