Question : An increase in demand could result from:

Option 1: Increase in price of the substitutes

Option 2: Decrease in price of the complementary good

Option 3: Increase in income of the consumer

Option 4: All of these

Question : Assume that both consumer income and the number of sellers in the market for good X decrease. Based on this information, we can confidently conclude that the equilibrium:

Option 1: Price will decrease

Option 2: Price will increase

Option 3: Quantity will increase

Option 4: Quantity will decrease

Question : The demand curve will shift forward when ______.

Option 1: price of complementary goods fall

Option 2: price of substitute goods decreases

Option 3: income of consumer fall

Option 4: price of complement goods increases

Question : When the price elasticity of demand is greater than 1, a decrease in price will result in:

Option 1: An increase in total revenue

Option 2: A decrease in total revenue

Option 3: No change in total revenue

Option 4: An indeterminate change in total revenue

Question : If the price elasticity of demand for a good is 2.5, then a 10% decrease in price will result in a:

Option 1: 2.5% increase in quantity demanded.

Option 2: 25% increase in quantity demanded.

Option 3: 2.5% decrease in quantity demanded.

Option 4: 25% decrease in quantity demanded.

Question : If the price elasticity of demand for a good is 1.2, then a 10% decrease in price will result in a:

Option 1: 1.2% increase in quantity demanded.

Option 2: 12% increase in quantity demanded.

Option 3: 1.2% decrease in quantity demanded.

Option 4: 12% decrease in quantity demanded.