Supply and Demand

If demand is __________ then price cuts will _________ spending? A. inelastic; increaseB. elastic; increase C. elastic, decrease D. none of the above

Increased levels of spending on imports ? A. shift aggregate supply to the right B. shift aggregate supply to the left C. shift aggregate demand to the rightD. shift aggregate demand to the left

Increase unemployment benefits and less incentive to work would ? A. shift aggregate supply to the right B. shift aggregate supply to the left C. shift aggregate demand to the right D. shift aggregate demand to the left

Which of the following would decease aggregate demand ? A. increase consumptionB. increasing export revenue C. increased taxation revenue D. increased investment

An increase in aggregate demand will have most effect on prices if ? A. Aggregate supply is price inelasticB. Aggregate supply is price elastic C. Aggregate supply has a unitary price elasticity D. Aggregate demand is price inelastic

A shift in aggregate supply is likely to ? A. Reduce the general price level and reduce national income B. Reduce the general price level and increase national income C. Increase the general price level and reduce national income D. Increase the general price level and increase national income

An increase in price from 25 pence to 30 pence leads to an increase in the quantity supplied from 40 units to 44 units. The price elasticity of supply is ? A. +2B. +0.5 C. -2 D. -0.5

A contraction in supply occurs when ? A. Demand shifts outwards B. The supply curve shifts inwardsC. The quantity supplied falls when the price falls D. The supply curve shifts outwards

Supply is likely to be more price elastic ? A. In the short run rather than the long run B. If factors of production are relatively immobile between industries C. If there are very few producersD. If it is easy to expand output

Which best describes a supply curve ? A. The quantity consumers would like to buy in an ideal worldB. The quantity producers are willing and able to sell at each and every price all other things unchanged C. The quantity producers are willing and able to sell at each and every income all other things…