Question : Which of the following scenarios will not cause the demand curve for a specific product to shift?
Option 1: A change in the income of the product's consumers.
Option 2: Effective advertising campaign by a substitute good manufacturer.
Option 3: A decrease in the price of the product's raw material
Option 4: A widely publicized study claims that the product is hazardous to consumers' health.
Correct Answer: A decrease in the price of the product's raw material
Solution : A reduction in the price of the raw material for that product does not cause the demand curve for a specific product to shift. As the due change in price demand curve will move not shift. Hence option c is the correct answer.
Question : If a consumer's income rises or the price of a complementary good falls, the-
Option 1: The product's demand curve shifts to the right.
Option 2: The product's demand curve shifts to the left.
Option 3: The product's supply curve shifts to the right.
Option 4: The product's supply curve shifts to the left.
Question : What is the best possible explanation for a shift in the market supply curve for a product?
Option 1: Price increases in raw materials
Option 2: Introduction of a government tax on that product.
Option 3: Introduction of a new technique that makes the production of that commodity less expensive.
Option 4: A successful advertising campaign that promotes the product.
Option 1: An advertising campaign that is successful in promoting the product
Option 2: Introduction of a tax on that product by the government
Option 3: Increase in the price of raw materials
Option 4: Introduction of a new technique that makes the production of that commodity cheaper
Question : A product's unique selling proposition (USP) refers to:
Option 1: The lowest price in the market
Option 2: The product's distinct features or benefits
Option 3: The product's promotional activities
Option 4: The product's packaging design
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