Question

55)Suppose Qs is the quantity supplied at a given price for brown rice and Qd is the quantity demanded at the same given price for brown rice. Which of the following market conditions produces an upward movement of the price for brown rice?

(a)Qs =1,000, Qd =860

(b)Qs =850, Qd=850

(c)Qs=750, Qd=1,000

(d)Qs=1,000, Qd=1,000

(57)Which of the following pairs of goods would be considered complementary?

(a)Coca-Cola and Pepsi

(b)Radios and Televisions

(c)Computers and computer software

(d)Compact discs and cassette tapes

(58)Suppose given ceteris paribus, organically grown green tea is a normal good, a rise in consumer income will shift the:

(a)Demand curve for green tea to the left

(b)Supply curve for green tea to the right

(c)Demand curve for green tea to the right

(d)More information needed to respond

(d)Compact discs and cassette tapes

59)Sugar and honey are seen as substitutes for each other in many household usage. Should the price of sugar rises, we should expect the:

(a)Demand for honey to decrease

(b)Quantity demanded of honey to decrease

(c)Demand for honey to increase

(d)Price of honey to decrease

(60)Which of the following pairs of demand equations best represent the change in the demand for honey in Q#59 above?

(a)D1=30-4P and D2=20-3P

(b)S1=60+3P and S2=100+2P

(c)D2=40-2P and D3=60-6P

(d)D3=70-P and D4=70-2P

Answer 1

55) An upward movement of the price would happen when the quantity supplied is less than the quantity demanded

Option (C)Qs=750, Qd=1,000

57) Complementary goods are those goods which are used together such as computers and computer software

Option(C)

58) When the income increases,the demand for normal good also increases

Option (C) shift the demand curve to the right

59) In case of substitutes when the price of good x increase,then the demand for good y increases

Option (C) demand for honey will increase when price of sugar increases