Microeconomics Quizzes Online & Trivia

1. A smaller quantity demanded for good X.When price changes there is a opposite change in the quantity demanded as measured on the horizontal axis.

The decrease in price for coffee (a substitute for tea) will make consumers demand more coffee than tea. Remember that demand curve runs from the top left corner to the bottom right corner and quantity demanded is on the x-axis ( horizontal axis). Moreover, numbers increase as we move to the right-hand side of the x-axis. This means that if the demand curve for coffee moves downwards along the demand curve, quantity demanded will be increasing and vice versa. Note that, the movement is happening along the demand curve, the curve itself is not swinging up or down. If the downward movement happens along the demand curve for tea, it means people are buying more tea than coffee because downward movement means increasing in quantity. This brings us to the conclusion that,C is the right answer to the question, not B.

Option C - microeconomics is about the study if economy at micro level. It focuses on issues that affect individuals and groups. It studies economics at individual, group and companies level. It studies behaviour concerning distribution of scarce resources.

1. A downward movement along the demand curve for tea.Because demand curves have a negative slope, as the price declines, the quantity demanded will increase.

A buyer would be willing to pay is measured in the maximum’s amount he is willing to pay for a good. Usually, products tend to be more expensive if high-quality materials were used just to make that product. It is not hard to see if a shirt that has a higher price is made of cotton or not. Buyers will not sacrifice their comfort over buying a cheaper shirt that is itchy to the skin. The use of high technology also adds up to the cost. If you, as a buyer, will be purchasing a smartphone that has good battery life, faster Internet, and large memory that will suit your needs even though it will cost you an arm and a leg, you would be more than willing to buy it.

ALL OF THE ABOVE In monopolistic competition closely substitute goods are produced which are slightly differentiatedbut let us note thata homogeneous productis one that cannot be distinguished from competingproductsfrom different suppliers.also said a homogenous product is one that is slightly diffrentiated from other similar products In other words, theproducthas essentially the same physical characteristics and quality as similarproductsfrom other suppliers. Oneproductcan easily be substituted for the other.

Are we supposed to ignore the sign of the elasticity of demand when answering the question?

I object to this unfair and immoral question. It goes against my beliefs.

Input costs can include materials, labor, fees, and other expenses. Output is the finished product. MC stands for marginal costs. If a company is spending more on their input costs, such as salaries or new machinery, there will be a decrease in the output profits. Marginal cost, that is the cost of making one item, will increase as well. Many factors play into this equation and it can fluctuate due to these varying costs. If input costs are increasing, the marginal costs are directly tied to it so it would naturally increase.

Get ready, because capitalism is a fireball and hard to anticipate. The correct answer is most likely answer B: equilibrium quantity will decrease, but equilibrium price may increase, decrease, or stay the same. This is because there’s a lot that the question doesn’t take into account. For example, you may have someone who purchases a particular soda because they are having a party and rarely drink soda (perhaps once every year or so). Then, you may have someone who buys it for headaches (I do that; I drink too much soda, but that’s for another day). The pricing on the soda itself - not the cost to produce it, but when it is sold to people like us - may change, and it may not. It depends on how much soda sales suffer because of the concern.

Price discrimination is when a producer will charge a different price for a different market. One good, modern example is clothing. Men’s clothing is typically around the same price for the same size, no matter the brand (unless you want specially made items or specialty items). Women’s clothing, on the other hand, varies in size, color, covering, and price from brand to brand and season to season. While smalls typically cost the least, their price can range anywhere from $3 to $25, depending on the brand, material, and the season. For another example, turn to fast food. Prices vary depending on the part of the world you’re in. European fast food places, for example, typically price fatty options higher than healthy options, while in America, the opposite is true.

The slope of the indifference curve is known to be A. The marginal rate of substitution is usually done when the value of y is given up in order to improve the value of x. This type of graph may be used by companies who would like to see the correlation of their goods to the satisfaction of customers. If you cannot understand this, you can liken it to eating a burger. The first burger that you will consume will be very nice to eat. It will satisfy you greatly. When you eat your fifth burger, you will not be too satisfied with what you are eating anymore. This is what the marginal rate of substitution shows.