MBA 701 QUESTIONS WITH VERIFIED ANSWERS 100% SOLVED| LATEST UPDATE
GUARANTEED PASS
For a steel factory, a decrease in the cost of electricity to the plant will cause the supply curve
to ____, all else equal.
a.become flatter
b.shift to the left
c.shift to the right
d.become parallel to the price axis c.shift to the right
Suppose the demand for good X is given by Qdx = 10 + axPx + ayPy + aMM. If ay is positive, then
____. [Py indicates the price of a related good].
a.goods y and x are complements
b.goods y and x are inferior goods
c.goods y and x are normal goods
d.goods y and x are substitutes d.goods y and x are substitutes
Suppose that when income rises, the demand curve for doctor's visits shifts to the right. In this
case, we know doctor's visits are ____.
a.inferior goods
b.normal goods
c.perfectly competitive goods
d.durable goods b.normal goods
,If Kindle e-readers and Nook e-readers are substitutes, a higher price for Nooks would result in
a(n) ____.
a.increase in the demand for Nooks
b.decrease in the quantity demand for Kindles
c.increase in the demand for Kindles
d.decrease in the demand for Kindles c.increase in the demand for Kindles
Ford Motor Company announces that next month it will offer $3,000 rebates on new Mustangs.
As a result of this information, today's demand curve for Mustangs ____.
a.shifts to the right
b.shifts to the left
c.shifts either to the right or to the left, but we cannot determine the direction of the shift from
the given information
d.will not shift; rather, the demand curve for Mustangs will shift to the right next month
b.shifts to the left -ppl will wait until next month to buy
Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the
federal government increases the minimum wage by $1.00 per hour, then it is likely that the
____.
a.demand for bicycle assembly workers will increase
b.supply of bicycles will shift to the right
c.supply of bicycles will shift to the left
d.firm must increase output to maintain profit levels c.supply of bicycles will shift to the left
, Suppose buyers of computers and printers regard the two goods as complements. Then an
increase in the price of computers will cause a(n) ____.
a.decrease in the demand for printers and a decrease in the quantity supplied of printers
b.increase in the supply of printers and a decrease in the quantity demanded of printers
c.decrease in the equilibrium price of printers and an increase in the equilibrium quantity of
printers
d.increase in the equilibrium price of printers and a decrease in the equilibrium quantity of
printers a.decrease in the demand for printers and a decrease in the quantity supplied of
printers
Which of the following leads to a decrease in demand for mechanical pencils (a normal good)?
a.an increase in incomes
b.a decrease in price of mechanical pencils
c.the price of mechanical pencils is expected to increase in the near future
d.a decrease in price of lead pencils, which is a substitute for mechanical pencils d.a
decrease in price of lead pencils, which is a substitute for mechanical pencils
The market for oranges is in equilibrium. Now suppose that a cold snap hits Florida, and at the
same time a new research shows that eating oranges reduces risk of heart disease. What will be
the effect of these changes on the equilibrium price and quantity in orange market?
a.Price will increase, and quantity will increase.
b.Price will decrease, and quantity will increase.
c.Price will increase, and effect on quantity is ambiguous.
d.Quantity will decrease, and effect on price is ambiguous. c.Price will increase, and effect
on quantity is ambiguous.
GUARANTEED PASS
For a steel factory, a decrease in the cost of electricity to the plant will cause the supply curve
to ____, all else equal.
a.become flatter
b.shift to the left
c.shift to the right
d.become parallel to the price axis c.shift to the right
Suppose the demand for good X is given by Qdx = 10 + axPx + ayPy + aMM. If ay is positive, then
____. [Py indicates the price of a related good].
a.goods y and x are complements
b.goods y and x are inferior goods
c.goods y and x are normal goods
d.goods y and x are substitutes d.goods y and x are substitutes
Suppose that when income rises, the demand curve for doctor's visits shifts to the right. In this
case, we know doctor's visits are ____.
a.inferior goods
b.normal goods
c.perfectly competitive goods
d.durable goods b.normal goods
,If Kindle e-readers and Nook e-readers are substitutes, a higher price for Nooks would result in
a(n) ____.
a.increase in the demand for Nooks
b.decrease in the quantity demand for Kindles
c.increase in the demand for Kindles
d.decrease in the demand for Kindles c.increase in the demand for Kindles
Ford Motor Company announces that next month it will offer $3,000 rebates on new Mustangs.
As a result of this information, today's demand curve for Mustangs ____.
a.shifts to the right
b.shifts to the left
c.shifts either to the right or to the left, but we cannot determine the direction of the shift from
the given information
d.will not shift; rather, the demand curve for Mustangs will shift to the right next month
b.shifts to the left -ppl will wait until next month to buy
Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the
federal government increases the minimum wage by $1.00 per hour, then it is likely that the
____.
a.demand for bicycle assembly workers will increase
b.supply of bicycles will shift to the right
c.supply of bicycles will shift to the left
d.firm must increase output to maintain profit levels c.supply of bicycles will shift to the left
, Suppose buyers of computers and printers regard the two goods as complements. Then an
increase in the price of computers will cause a(n) ____.
a.decrease in the demand for printers and a decrease in the quantity supplied of printers
b.increase in the supply of printers and a decrease in the quantity demanded of printers
c.decrease in the equilibrium price of printers and an increase in the equilibrium quantity of
printers
d.increase in the equilibrium price of printers and a decrease in the equilibrium quantity of
printers a.decrease in the demand for printers and a decrease in the quantity supplied of
printers
Which of the following leads to a decrease in demand for mechanical pencils (a normal good)?
a.an increase in incomes
b.a decrease in price of mechanical pencils
c.the price of mechanical pencils is expected to increase in the near future
d.a decrease in price of lead pencils, which is a substitute for mechanical pencils d.a
decrease in price of lead pencils, which is a substitute for mechanical pencils
The market for oranges is in equilibrium. Now suppose that a cold snap hits Florida, and at the
same time a new research shows that eating oranges reduces risk of heart disease. What will be
the effect of these changes on the equilibrium price and quantity in orange market?
a.Price will increase, and quantity will increase.
b.Price will decrease, and quantity will increase.
c.Price will increase, and effect on quantity is ambiguous.
d.Quantity will decrease, and effect on price is ambiguous. c.Price will increase, and effect
on quantity is ambiguous.
