MBA 701 Module 1 | Questions with 100% Verified Answers |
Latest Update 2026/2027
Question: Assume coffee and doughnuts are complements. When the
price of doughnuts goes up, which of the following will
happen to the market for coffee?
A. The demand curve for coffee will shift to the right
B. The supply curve for coffee will shift to the left
C. The equilibrium price for coffee will increase
D. The equilibrium quantity of coffee will decrease
Answer:
D. The equilibrium quantity of coffee will decrease
Question: On any given supply curve, each point represents:
A. the highest price sellers can get for each unit over time
B. the lowest price buyers will accept per unit of good
C. the highest price buyers will pay for the good
D. the lowest price for which a supplier can profitably sell
another unit
Answer:
D. the lowest price for which a supplier can profitably sell another unit
*supply curve is all about suppliers, NOT buyers
Question: Given a supply curve for a normal good; while moving along
the supply curve, which of the following is NOT held
constant?
A. the price of the good itself
B. expected future prices
C. prices of resources used in production
D. the number of sellers
Answer:
A. the price of the good itself
Question: An increase in quantity demanded caused by a decrease in
price is represented by a
A. movement down and to the right along the demand curve
B. movement up and to the left along the demand curve
C. rightward shift of the demand curve
D. leftward shift of the demand curve
Answer:
A. movement down and to the right along the demand curve
, Question: Movie tickets is a normal good, in the market for movie tickets,
a decrease in income will cause the
A. quantity demanded for movie tickets to decrease
B. supply curve for movie tickets to shift left
C. demand curve for movie tickets to shift left
D. demand curve for movie tickets to shift right
Answer:
C. demand curve for movie tickets to shift left
*an increase in income would cause the curve to shift right
Question: DEMAND CURVE: Change in Demand
Answer:
this is a shift (left or right) in the entire curve and can be affected by a number of things:
taste, preference, income, etc.
*price NEVER shifts the curve
Question: DEMAND CURVE: Change in Quantity Demanded
Answer:
that is movement along the demand curve and can ONLY be affected by price
Question: DEMAND CURVE: What type of relationship does price and
quantity have?
Answer:
Inverse relationship; the higher the price, the less likely people are to purchase (and vice
versa); downward sloping line
Question: SUPPLY CURVE: Change in Supply
Answer:
this is a shift (left or right) in the entire curve and can be affected by a number of things:
status of the good, preference, income, etc.
*price NEVER shifts the curve
Question: SUPPY CURVE: Change in Quantity Supplied
Answer:
that is movement along the supply curve and can ONLY be affected by price
-they is always a change in the price (P increase, then Q increase and vice versa)
-the more they get paid to produce, they more they'll want to produce
Latest Update 2026/2027
Question: Assume coffee and doughnuts are complements. When the
price of doughnuts goes up, which of the following will
happen to the market for coffee?
A. The demand curve for coffee will shift to the right
B. The supply curve for coffee will shift to the left
C. The equilibrium price for coffee will increase
D. The equilibrium quantity of coffee will decrease
Answer:
D. The equilibrium quantity of coffee will decrease
Question: On any given supply curve, each point represents:
A. the highest price sellers can get for each unit over time
B. the lowest price buyers will accept per unit of good
C. the highest price buyers will pay for the good
D. the lowest price for which a supplier can profitably sell
another unit
Answer:
D. the lowest price for which a supplier can profitably sell another unit
*supply curve is all about suppliers, NOT buyers
Question: Given a supply curve for a normal good; while moving along
the supply curve, which of the following is NOT held
constant?
A. the price of the good itself
B. expected future prices
C. prices of resources used in production
D. the number of sellers
Answer:
A. the price of the good itself
Question: An increase in quantity demanded caused by a decrease in
price is represented by a
A. movement down and to the right along the demand curve
B. movement up and to the left along the demand curve
C. rightward shift of the demand curve
D. leftward shift of the demand curve
Answer:
A. movement down and to the right along the demand curve
, Question: Movie tickets is a normal good, in the market for movie tickets,
a decrease in income will cause the
A. quantity demanded for movie tickets to decrease
B. supply curve for movie tickets to shift left
C. demand curve for movie tickets to shift left
D. demand curve for movie tickets to shift right
Answer:
C. demand curve for movie tickets to shift left
*an increase in income would cause the curve to shift right
Question: DEMAND CURVE: Change in Demand
Answer:
this is a shift (left or right) in the entire curve and can be affected by a number of things:
taste, preference, income, etc.
*price NEVER shifts the curve
Question: DEMAND CURVE: Change in Quantity Demanded
Answer:
that is movement along the demand curve and can ONLY be affected by price
Question: DEMAND CURVE: What type of relationship does price and
quantity have?
Answer:
Inverse relationship; the higher the price, the less likely people are to purchase (and vice
versa); downward sloping line
Question: SUPPLY CURVE: Change in Supply
Answer:
this is a shift (left or right) in the entire curve and can be affected by a number of things:
status of the good, preference, income, etc.
*price NEVER shifts the curve
Question: SUPPY CURVE: Change in Quantity Supplied
Answer:
that is movement along the supply curve and can ONLY be affected by price
-they is always a change in the price (P increase, then Q increase and vice versa)
-the more they get paid to produce, they more they'll want to produce
