[arcanum_14]

OK, so I need help on these 5 multiple choice questions in Economics based on supply and demand.

1. Assume there is a fall in demand for a good. Ceteris paribus (all other things equal), this will result in:

A. A rise in the price of the good and a fall in the price of factors used to make it
B. A rise in the price of the good and a rise in the price of factors used to make it
C. A fall in the price of the good and a fall in the price of factors used to make it
D. A fall in the price of the good and a rise in the price of factors used to make it
E. None of the above

2. In the commercial property market which of the following is most likely to shift the demand curve for commercial property to the right?

A. New stricter planning regulations on construction companies
B. A fall in confidence in the economy
C. An increase in the cost of building materials
D. An increase in profitability in all sectors of the economy
E. A fall in average wages of construction workers

3. In the market for air travel, arise in the price of oil is likely to result in

A. A rightward shift in the supply curve for air travel
B. An increase in airport taxes
C. Excess demand for air travel
D. A shift in the demand curve for air travel to the right
E. A rise in the equilibrium price of air travel

4. In the market for coffee which of the following would cause a rightward shift in the demand for coffee

A. An advertising campaign showing the health benefits of coffee
B. A fall in the price of tea
C.The introduction of new more efficient machinery
D. Expectations of a fall in the future price of coffee
E. A new tax on coffee producers

5.If the government introduces a new higher minimum wage for hotel workers which is above the equilibrium wage in the industry, this is likely to lead to

A. A shift in the demand for hotel workers to the right
B. Excess supply of labour to the hotel sector
C. A fall in the number of people wanting to work in hotels
D. A lower equilibrium wage
E. All of the above answers are true

All help is appreciated!

[Curlyben]

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