ECS1501
Economics 1A
Unique Number: 817792
Assignment: 02
Semester: 02
Year: 2020
Due Date: 14 September
Page 1 of 7
, 2.1 The downward slope of a demand curve reflects that
[1] price is positively relative to quantity supplied.
[2] there is an inverse relationship between price and quantity demanded.
[3] as price increases, consumers willingly buy more.
[4] an increase in income will reduce desired purchases and consumption.
Answer is 2
“An important property of a demand curve is that it slopes downwards from left to right. This reflects the inverse or
negative relationship between the price and the quantity demanded.”
2.2 The quantity demanded of a good will increase if
[1] the price of the good decreases.
[2] the price of a substitute good decreases.
[3] average household income decreases (assuming the good is a normal good).
[4] the price of a complement good increases.
Answer is 1
“Change in quantity demanded. Caused when consumers buy more in response to a decrease in price or less in
response to an increase in price, the quantity demanded is said to move "move along the demand curve" Change in
demand. Occurs when quantities demanded increase or decrease at all prices.”
2.3 Which of the following would cause an upward shift in the supply curve for a good?
[1] an increase in the price of the good.
[2] an increase in the price of an input.
[3] an increase in demand.
[4] a cost-saving technological innovation.
Answer is 1
“When the supply curve slopes upwards from left to right, it shows a positive relationship between the price and
quantity supplied. An increase in cost causes an upward (or a leftward) shift of the supply curve so that at any price,
the quantities supplied will be smaller.”
Page 2 of 7
Economics 1A
Unique Number: 817792
Assignment: 02
Semester: 02
Year: 2020
Due Date: 14 September
Page 1 of 7
, 2.1 The downward slope of a demand curve reflects that
[1] price is positively relative to quantity supplied.
[2] there is an inverse relationship between price and quantity demanded.
[3] as price increases, consumers willingly buy more.
[4] an increase in income will reduce desired purchases and consumption.
Answer is 2
“An important property of a demand curve is that it slopes downwards from left to right. This reflects the inverse or
negative relationship between the price and the quantity demanded.”
2.2 The quantity demanded of a good will increase if
[1] the price of the good decreases.
[2] the price of a substitute good decreases.
[3] average household income decreases (assuming the good is a normal good).
[4] the price of a complement good increases.
Answer is 1
“Change in quantity demanded. Caused when consumers buy more in response to a decrease in price or less in
response to an increase in price, the quantity demanded is said to move "move along the demand curve" Change in
demand. Occurs when quantities demanded increase or decrease at all prices.”
2.3 Which of the following would cause an upward shift in the supply curve for a good?
[1] an increase in the price of the good.
[2] an increase in the price of an input.
[3] an increase in demand.
[4] a cost-saving technological innovation.
Answer is 1
“When the supply curve slopes upwards from left to right, it shows a positive relationship between the price and
quantity supplied. An increase in cost causes an upward (or a leftward) shift of the supply curve so that at any price,
the quantities supplied will be smaller.”
Page 2 of 7
