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COBA Exam Questions with
Detailed Verified Answers
If the average household income increases and there is relatively
little change in the price of a normal good then
A) Supply curve will shift to the left
B) Quantity demanded will move farther down the demand curve
C) Demand will shift to the left
D) Demand will shift to the right Ans: D) Demand will shift to the
right
The demand curve for a normal good is
A) Upward sloping because firms produce more at higher prices
B) Upward sloping because higher-priced goods are of higher
quality
C) Vertical
D) Downward sloping because of the income and substitution
effects of price changes Ans: D) Downward sloping because of
the income and substitution effects of price changes
A decrease in the price of a complementary good will
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A) Shift the demand curve of the other commodity to the left
B) Increase the price paid for a substitute good
C) Shift the supply curve of the other commodity to the left
D) Shift the demand curve of the other commodity to the right
Ans: D) Shift the demand curve of the other commodity to the
right
Which one of the following changes will cause the demand curve
for gasoline to shift to the left
A) The price of gasoline increases
B) The supply of gasoline decreases
C) The price of cars increase
D) The price of cars decrease Ans: C) The price of cars increase
Tennis rackets and tennis balls are
A)Substitute goods
B) Independent goods
C) Inferior goods
D) Complementary goods Ans: D) Complementary goods
A supply curve illustrates the relationship between
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A) Price and quantity supplied
B)Price and consumer tastes
C) price and quantity demanded
D) Supply and demand Ans: A) Price and quantity supplied
In relation to the laws of supply and demand, an increase in
supply will
A) Increase the equilibrium price and the equilibrium quantity
exchanged
B) Decrease the equilibrium price and the equilibrium quantity
exchanged
C) Increase the equilibrium price and decrease the equilibrium
quantity exchanged
D) Decrease the equilibrium price and increase the equilibrium
quantity exchanged Ans: D) Decrease the equilibrium price and
increase the equilibrium quantity exchanged
An increase in the market supply of beef would result in a(n)
A) increase in the price of beef
B) Decrease in the price of beef
C) Increase in the price of pork
COBA Exam Questions with
Detailed Verified Answers
If the average household income increases and there is relatively
little change in the price of a normal good then
A) Supply curve will shift to the left
B) Quantity demanded will move farther down the demand curve
C) Demand will shift to the left
D) Demand will shift to the right Ans: D) Demand will shift to the
right
The demand curve for a normal good is
A) Upward sloping because firms produce more at higher prices
B) Upward sloping because higher-priced goods are of higher
quality
C) Vertical
D) Downward sloping because of the income and substitution
effects of price changes Ans: D) Downward sloping because of
the income and substitution effects of price changes
A decrease in the price of a complementary good will
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A) Shift the demand curve of the other commodity to the left
B) Increase the price paid for a substitute good
C) Shift the supply curve of the other commodity to the left
D) Shift the demand curve of the other commodity to the right
Ans: D) Shift the demand curve of the other commodity to the
right
Which one of the following changes will cause the demand curve
for gasoline to shift to the left
A) The price of gasoline increases
B) The supply of gasoline decreases
C) The price of cars increase
D) The price of cars decrease Ans: C) The price of cars increase
Tennis rackets and tennis balls are
A)Substitute goods
B) Independent goods
C) Inferior goods
D) Complementary goods Ans: D) Complementary goods
A supply curve illustrates the relationship between
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A) Price and quantity supplied
B)Price and consumer tastes
C) price and quantity demanded
D) Supply and demand Ans: A) Price and quantity supplied
In relation to the laws of supply and demand, an increase in
supply will
A) Increase the equilibrium price and the equilibrium quantity
exchanged
B) Decrease the equilibrium price and the equilibrium quantity
exchanged
C) Increase the equilibrium price and decrease the equilibrium
quantity exchanged
D) Decrease the equilibrium price and increase the equilibrium
quantity exchanged Ans: D) Decrease the equilibrium price and
increase the equilibrium quantity exchanged
An increase in the market supply of beef would result in a(n)
A) increase in the price of beef
B) Decrease in the price of beef
C) Increase in the price of pork
