This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Demand And Supply Analysis > Demand And Supply Analysis – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand And Supply Analysis Quiz 7 (10 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The cost of inputs for a product increases. How will this affect the market price and quantity for that product? A) Price will decrease, quantity will increase. B) Price and quantity will both increase. C) Price will increase, quantity will decrease. D) Price and quantity will both decrease. Show Answer Correct Answer: C) Price will increase, quantity will decrease. 2. Opposite of inflation A) Flation. B) Deflation. C) Tion. D) None of above. Show Answer Correct Answer: B) Deflation. 3. A change in consumer expectations. A) Shift in Supply. B) Shift in Demand. Show Answer Correct Answer: B) Shift in Demand. 4. I know that the iPhone 8 is coming out next year but really need a phone badly. I'm thinking about buying an iPhone 7 when the new iPhone comes to the market because it will be much cheaper than today's price. What determinant of demand does this suggest? A) Change in Price of Complementary Good. B) Change in Consumer Price Expectations. C) Change in Number of Consumers in the Market. D) Change in Consumer Income. Show Answer Correct Answer: B) Change in Consumer Price Expectations. 5. Suppose the economy is producing at the natural rate of output. Assuming a fixed natural rate of output and everything else held constant, the development of a new, more productive technology will cause ..... in the unemployment rate in the long run and ..... in inflation in the short run. A) An increase; an increase. B) No change; no change. C) A decrease; a decrease. D) No change; a decrease. Show Answer Correct Answer: D) No change; a decrease. 6. A rightward shift in demand curve parallel to the original demand curve is known as A) Increase in demand. B) Movement along the supply Curve. C) Movement along the Demand Curve. D) Shift in supply. Show Answer Correct Answer: A) Increase in demand. 7. Takis have been taking the market by storm! Everyone and their mom wants in on selling this delicious treats! Companies that never thought about selling Takis-like products are now selling their version of a hot chip. What supply factor is this? A) Change in Technology. B) Government Action. C) Change in Number of Sellers in the Market. D) None of above. Show Answer Correct Answer: C) Change in Number of Sellers in the Market. 8. I foresee gas prices rising tremendously in the next summer. I as a gas supplier, want to cut my supply now so gas prices continue to rise. What supply factor does this best relate to? A) Change in Technology. B) Government Action. C) Change in Producers' Price Expectations. D) None of above. Show Answer Correct Answer: C) Change in Producers' Price Expectations. 9. Under conditions of perfect competition, in the long run firms will most likelyearn: A) Normal profits. B) Positive economic profits. C) Negative economic profits. D) None of above. Show Answer Correct Answer: A) Normal profits. 10. The demand for membership at a local health club is determined by the following equation:$Q_{hm}^d=400\-\ 5P_{hm}$ $Q_{hm}^d$ $P_{hm}$ A) -0.778. B) -0.500. C) -0.438. D) None of above. Show Answer Correct Answer: A) -0.778. ← PreviousRelated QuizzesMicroeconomics QuizzesEconomics QuizzesDemand And Supply Analysis Quiz 1Demand And Supply Analysis Quiz 2Demand And Supply Analysis Quiz 3Demand And Supply Analysis Quiz 4Demand And Supply Analysis Quiz 5Demand And Supply Analysis Quiz 6 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books