Question No 44:
If the government imposes a maximum price for a good that is below the equilibrium price, the resulting market shortage will be greatest when:
A. The demand is price elastic and the supply is price inelastic
B. The demand is price elastic and the supply is price elastic
C. The demand is price inelastic and the supply is price elastic
D. The demand is price inelastic and the supply is price inelastic
Answer: B
Thursday, 25 February 2016
Thursday, 18 February 2016
Cima C04 Exam Question No 43
Question No 43:
If the government imposed a price for a good that was above the equilibrium price, the consequence would be?
A. A contraction of demand, an increase in supply and a market surplus
B. A decrease in demand, an extension of supply and a market surplus
C. A contraction in demand, an extension in supply and a market surplus
D. A rise in supply, a fall in demand and a market shortage
Answer: C
If the government imposed a price for a good that was above the equilibrium price, the consequence would be?
A. A contraction of demand, an increase in supply and a market surplus
B. A decrease in demand, an extension of supply and a market surplus
C. A contraction in demand, an extension in supply and a market surplus
D. A rise in supply, a fall in demand and a market shortage
Answer: C
Thursday, 11 February 2016
Cima C04 Exam Question No 42
Question No 42:
If a business currently sells 10,000 units of its product each month at $10 each unit and the demand for its product has a price elasticity of -2·5, a rise in the price of the product to $11 will?
A. Raise total revenue by $7,250.
B. Reduce total revenue by $17,500.
C. Reduce total revenue by $25,000.
D. Raise total revenue by $37,500.
Answer: B
If a business currently sells 10,000 units of its product each month at $10 each unit and the demand for its product has a price elasticity of -2·5, a rise in the price of the product to $11 will?
A. Raise total revenue by $7,250.
B. Reduce total revenue by $17,500.
C. Reduce total revenue by $25,000.
D. Raise total revenue by $37,500.
Answer: B
Sunday, 7 February 2016
Cima C04 Exam Question No 41
Question No 41:
Which ONE of the following would lead the demand curve for a good to shift to the right?
A. A rise in consumer income where the good is a normal good.
B. A decrease in the supply of a complementary good.
C. An increase in the supply of a substitute good.
D. A fall in the price of the good.
Answer: A
Which ONE of the following would lead the demand curve for a good to shift to the right?
A. A rise in consumer income where the good is a normal good.
B. A decrease in the supply of a complementary good.
C. An increase in the supply of a substitute good.
D. A fall in the price of the good.
Answer: A
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