1111. An increase in the price of a complement for product A would :

A. Shift demand for product A outwards
B. Increase internal demand for product A *
C. Shift supply for product A Outwards
D. Shift supply for product A inwards

1112. An increase in price all other things unchanged leads to :

A. Shift demand outwards
B. Shift demand inwards
C. A contraction of demand *
D. An extension of demand

1113. If a product is an inferior good :

A. Income is inversely correlated with demand *
B. Demand is inversely related to price
C. Demand is directly related to price
D. The price of alternatives is inversely correlated with demand.

1114. The production possibilities curve’s bowed shape shows:

A. The law of diminishing marginal cost *
B. That production is in efficient
C. That production is unattainable
D. The demand is relatively inelastic

1115. If demand is price inelastic :

A. Profits must rise as a result of price increases.
B. An increase in price decreases revenue
C. An increase in cost raises money *
D. A decrease in price reduces sales

1116. For an inferior good :

A negative price elasticity of demand; the pay versatility of interest is negative *
B. While there is a positive price elasticity of demand, there is a negative income elasticity of demand.
C. Demand’s price elasticity is negative; Positive income elasticity of demand
D. The income elasticity of demand is greater than the price elasticity of demand.

1117. For a normal good :

A. The price elasticity of demand is negative ; the income elasticity of demand is negative
B. The price elasticity of demand is positive ; the income elasticity of demand is negative
C. Demand’s price elasticity is negative; Demand’s income elasticity is positive *
D. The income elasticity of demand and price elasticity of demand are both positive.

1118. Supply is likely to be more price elastic :

A. In the short term as opposed to the long term
B. If production factors are relatively static across industries
C. If there are very few producers
D. If it is easy to expand output

1119. Starting at the origin, a supply curve has:

A higher than one price elasticity of supply
B. A supply-price elasticity of one *
C. A supply-price elasticity less than one
D. A positive price elasticity shifts inwards

1120. A contraction in supply occurs when :

A. Demand shift outwards
B. The supply curve shifts inwards
C. When the price goes down, less is delivered *
D. The supply curve shifts outwards