MBA 701 - Module 1 Exam Questions and Answers Already Passed Latest Update 2025-2026
Demand - price goes up - Answers quantity demand goes down
Demand - price goes down - Answers quantity demand goes up
Negative (or inverse) relationship - Answers between price and quantity demanded
Supply - price goes up - Answers quantity supply goes up
Supply side - Answers business
Demand side - Answers consumer behavioral (maximize utility)
When the price goes up - Answers more people want to supply quantity
"Normal" good - income of consumer goes up - Answers demand goes up
"Normal" good - demand curve shifts - Answers to the right
"Normal" good - keep supply constant, higher price - Answers and quantity goes up (more
available)
so equilibrium price & quantity go up
Quantity demanded - change in QD due to - Answers price is changing
(price change > QD change)
Quantity demanded is - Answers any points on the demand curve
Quantity demanded illustration - Answers at any given price in the market
Demand curve is - Answers the whole graph
Demand curve shifts - Answers to the right or left
Demand curve shocks like - Answers preference/taste or change in income
Reason quantity demand of good increase when price falls - Answers demand curve is
downward graph, why inverse relationship
Substitution effect - Answers when things become expensive/cheap, people tend to buy more of
1 good over another
Demand of good increasing when price falls is called - Answers substitution effect
Tea goes up (expensive) - Answers more people buy coffee
Income effect - Answers limited income
Demand - price goes up - Answers quantity demand goes down
Demand - price goes down - Answers quantity demand goes up
Negative (or inverse) relationship - Answers between price and quantity demanded
Supply - price goes up - Answers quantity supply goes up
Supply side - Answers business
Demand side - Answers consumer behavioral (maximize utility)
When the price goes up - Answers more people want to supply quantity
"Normal" good - income of consumer goes up - Answers demand goes up
"Normal" good - demand curve shifts - Answers to the right
"Normal" good - keep supply constant, higher price - Answers and quantity goes up (more
available)
so equilibrium price & quantity go up
Quantity demanded - change in QD due to - Answers price is changing
(price change > QD change)
Quantity demanded is - Answers any points on the demand curve
Quantity demanded illustration - Answers at any given price in the market
Demand curve is - Answers the whole graph
Demand curve shifts - Answers to the right or left
Demand curve shocks like - Answers preference/taste or change in income
Reason quantity demand of good increase when price falls - Answers demand curve is
downward graph, why inverse relationship
Substitution effect - Answers when things become expensive/cheap, people tend to buy more of
1 good over another
Demand of good increasing when price falls is called - Answers substitution effect
Tea goes up (expensive) - Answers more people buy coffee
Income effect - Answers limited income
