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MBA 701 - Module 2 Supply & Demand.
Exam Questions And Answers |Latest 2025 |
Guaranteed Pass
Which of the following correctly depicts an increase in demand?
A. A leftward shift of the demand curve.
B. A downward movement along the demand curve.
C. An upward movement along the demand curve.
D. A rightward shift along the demand curve. - Answer✔D. A rightward shift along the demand
curve.
Reason: An increase in demand is depicted by a shift of the demand curve, not a movement
along the curve.
True or False.
The law of demand analyzes the relationship between price and quantity demanded holding
everything else constant that influences buyers decisions. - Answer✔True.
Reason: The law of demand considers just the relationship between price and the quantity
demanded, holding all other influences on buying decisions constant.
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If the price of good A increases and, as a result, the demand for good B decreases, then goods A
and B are considered to be
A. complements.
B. inferior.
C. substitutes.
D. unrelated. - Answer✔A. Complement
The difference between what consumers are willing to pay for a good or service and the market
price is known as _____.
A. Marginal Willingness to pay
B. Consumer Surplus
C. Marginal Revenue
D. producer surplus - Answer✔B. Consumer Surplus
What do economists use to describe the amount of good X that will be purchased at different
prices of good X, at different prices of related goods, and at alternative income levels? -
Answer✔Demand Function
What can cause the market demand curve for day-old bread -- an inferior good -- to shift
rightward (an increase in demand)? - Answer✔A decrease in consumers' incomes.
What can cause the market supply curve for electric cars to shift rightward (an increase in
supply)?
A. An increase in consumers' incomes
B. An advancement in technology that reduces the cost of making electric cars
C. An increase in the price of steel -- an input to electric cars
2|Page
MBA 701 - Module 2 Supply & Demand.
Exam Questions And Answers |Latest 2025 |
Guaranteed Pass
Which of the following correctly depicts an increase in demand?
A. A leftward shift of the demand curve.
B. A downward movement along the demand curve.
C. An upward movement along the demand curve.
D. A rightward shift along the demand curve. - Answer✔D. A rightward shift along the demand
curve.
Reason: An increase in demand is depicted by a shift of the demand curve, not a movement
along the curve.
True or False.
The law of demand analyzes the relationship between price and quantity demanded holding
everything else constant that influences buyers decisions. - Answer✔True.
Reason: The law of demand considers just the relationship between price and the quantity
demanded, holding all other influences on buying decisions constant.
1|Page
, ©THEBRIGHT 2025 ALL RIGHTS RESERVED 4:52 PM A+
If the price of good A increases and, as a result, the demand for good B decreases, then goods A
and B are considered to be
A. complements.
B. inferior.
C. substitutes.
D. unrelated. - Answer✔A. Complement
The difference between what consumers are willing to pay for a good or service and the market
price is known as _____.
A. Marginal Willingness to pay
B. Consumer Surplus
C. Marginal Revenue
D. producer surplus - Answer✔B. Consumer Surplus
What do economists use to describe the amount of good X that will be purchased at different
prices of good X, at different prices of related goods, and at alternative income levels? -
Answer✔Demand Function
What can cause the market demand curve for day-old bread -- an inferior good -- to shift
rightward (an increase in demand)? - Answer✔A decrease in consumers' incomes.
What can cause the market supply curve for electric cars to shift rightward (an increase in
supply)?
A. An increase in consumers' incomes
B. An advancement in technology that reduces the cost of making electric cars
C. An increase in the price of steel -- an input to electric cars
2|Page
