Multiple choice

Question 1

When the market price is above equilibrium price, the market price will be driven:

A. up by buyers.

B. up by sellers.

C. down by buyers

D. down by sellers.

Question 2

Changes in demand are caused by each of the following EXCEPT changes in:

A. income.

B. the prices of related goods and services.

C. tastes and preferences.

D. supply.

Question 3

An increase in the price of a complement will result in a(n) __________ for the product.

A. decrease in the quantity demanded

B. increase in the quantity demanded

C. decrease in the demand

D. increase in the demand

Question 4

If coffee is a substitute for tea, and the price of coffee rises, what will happen?

A. Demand for tea will decrease.

B. Demand for tea will increase.

C. The quantity demanded of coffee will rise.

D. The quantity demanded of tea will decrease.