Question

Question 5

Knowing that coffee and tea are substitutes, suppose that the demand for coffee increases and, at the same time, the supply of the coffee decreases. What would surely happen in the tea market?

Question 5 options:

	The Demand for tea will go up because the price of coffee went up.
	The price of tea will go down because the price of coffee went up.
	The supply of tea will go down because the price of coffee went up.
	Not enough data exist to conclude what exactly will happen in the tea market.

Question 6

Suppose that the demand decreased for 4K TVs and, at the same time, the supply of 4K TVs increased. What would happen in the market for 4K TVs?

Question 6 options:

	Equilibrium price would decrease, but the impact on the equilibrium quantity would be ambiguous.
	Equilibrium price would increase, but the impact on the equilibrium quantity would be ambiguous.
	Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
	Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

Question 7

Other things remain unchanged, the demand for normal products is expected to increase when buyers' incomes go up.

Question 7 options:

	True
	False

Question 8

When other things remain equal, buyers are expected to stock up from the normal product that they expect its market price to decline significantly in the soon future.

Question 8 options:

	True
	False

Answer 1