541. Marshall consumer surplus is the area between:
A) MU curve and the market price
B) Demand curve and the price axis below the market price
C) Demand curve and the price axis above the market price
D) None of the above
542. Production costs will rise, which will:
A. Shift demand outwards
B. Shift demand inwards
C. Extend supply so that more is available at every price point.
D. Shift supply inwards
543. An increase in productivity should:
A. Lead to a contraction of supply
B. Lead to an expansion of supply
C. Lead to a shift in supply outward that is more supplied at each and every price
D. Produce an equilibrium quantity that is both higher and lower.
544. If demand increases in a market, this will usually lead to:
A. A higher harmony cost and result
B. More output and a lower equilibrium price
C. A price and output equilibrium that is lower
D. A higher harmony cost and lower yield
545. An increase in price, all other things unchanged, leads to:
A. A shift in supply outwards
B. A shift in supply inwards
C. A contraction of supply
D. An extension of supply
546. An increase in income will:
A. Cause a change in the demand curve
B. Shift the demand curve
C. Shift the supply curve
D. Lead to an extension of demand
547. A reduction in the costs of production will:
A. Cause a change in the supply curve
B. Shift the demand curve
C. Shift the supply curve
D. Lead to an extension of supply
548. A shift in supply will have a bigger effect on price than output if demand is:
A. Income elastic
B. Income inelastic
C. Price elastic
D. Price inelastic
549. If the demand curve is skewed downward and the supply curve is skewed upward, a higher equilibrium price could result from:
A. A fall in demand
B. An increase in supply
C. Improvements in production technology
D. An increase in demand
550. If the price was fixed below the equilibrium price there would be:
A. Excess supply
B. Excess demand
C. Equilibrium
D. Downward pressure on prices
Admin