Market Supply and Demand and Equilibrium Prices

Market Supply and Demand and Equilibrium Prices

Market demand and supply
 1. The following might influence the demand for a good. Which would not cause a shift in the
1 demand curve for the product?
A. a change in the price of a complement
B. a change in the price of the good itself
C. a change in the price of a substitute
D. a change in consumers’ incomes
 2. A fall in the price of online music downloads from sites such as iTunes and growing popularity for
1 services such as Spotify results in a fall in the demand for music CDs. This result implies that
these products are
A. Are in joint demand
B. Are in joint supply
C. Are produced by business involved in a cartel
D. Are substitute products
 3. A major determinant of demand in one particular market would be
1
A. the technique of production
B. the number of sellers in the market
C. the incomes of buyers in that market
D. the cost of rawmaterials
 4. Which of the following will result in a shift in the demand curve for motorcycles?
1
A. a subsidy paid to producers of motorcycles
B. higher raw material and component prices in the production of motorcycles
C. falling petrol and dieselprices
D. higher motorcycle prices
 5. Which of the following would shift the supply curve for housing in Glasgow to the right?
1
A. an increase in mortgage interest rates
B. the release of more land for housing development in the suburbs around Glasgow
C. an increase in the cost of construction materials
D. an increase in speculative demand for properties in Glasgow