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Revision Test_2
Grade 10Economics
Topics: (marketing forces)
No. of questions: 30 Time: 45 min
1. A good is successfully advertised.
What is the most likely impact on the demand and supply curves
for the good?
2. The diagram shows the supply and demand curves for a good.
The market is in equilibrium at point X.
What is the excess demand at price P?
A PT B QR C QT D ST
3. The table shows the value of the price elasticity of demand
for four products
What would have an increase in sales revenue if prices rose by
10 %?A cars onlyB cars and mobile phones
C radios and saltD salt only
4. Tea and sugar are complementary goods.
What will happen if the price of tea falls, other things being
equal?A The demand curve for sugar will move to the right.B The
demand curve for tea will move to the right.C The price of sugar
will fall.D The supply curve of sugar will move to the left
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5. The price of a good is temporarily above the market
equilibrium price.What must happen for the market to be brought
back to equilibrium?
6. What is not held constant in calculating a demand schedule?A
the incomes of consumersB the prices of complementary goodsC the
price of the good itselfD the tastes of consumers
7. As petrol prices increase, demand for petrol remains
constant.What does this say about the price elasticity of
petrol?
A The demand is price-elastic.
B The demand is price-inelastic.C The supply is price-elastic.D
The supply is price-inelastic.
8. The price elasticity of demand for a good is unitary.What
would be the effect of a 1 % fall in its price?
A to increase total revenue by 0.1 %B to leave quantity demanded
unchangedC to leave total revenue unchangedD to reduce quantity
demanded by 1 %
9. What is an important influence on price elasticity of
demand?
A average earningsB tastes of consumersC the cost of livingD the
number of close substitutes
10. The diagram shows demand and supply curves for a good. The
market is in equilibrium at pointX.What would be the new
equilibrium position if there were a successful advertising
campaign forthe good and an increase in the cost of raw
materials?
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11. In 2002 the world price of cocoa was higher than in
2001.Which combination of changes in the demand for and the supply
of cocoa would always lead to a rise inprice?
12. A product has a price elasticity of demand that is greater
than one.What will happen to total revenue if the price of the
product is reduced by 3 %?
A It will fall by more than 3 %.B It will fall to zero.C It will
be unchanged.D It will rise.
13. The diagram shows a change in the demand for a companys
products as a result of a change inadvertising.
What has increased?A the cost of advertising to the companyB the
cost of advertising to a rival company
C the expenditure on advertising by the companyD the expenditure
on advertising by a rival company
14. The demand for and supply of a good both change. As a result
the price of the good rises but the quantitytraded remains the
same.What must have happened to demand and supply?
15. In a market there is a shortage of a good.What change would
cause the market to come to an equilibrium?
A an increase in demandB a decrease in supplyC a fall in priceD
a rise in price
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16. The diagram shows the supply curve for a good.
What is the price elasticity of supply when the price rises from
$2 to $4?A 0.2 B 0.5 C 1 D 2
17. A firm changes the price of its product and finds that its
revenue increases.What combination of price change and price
elasticity of demand would have caused this?
A government wishes to impose a tax on a good to raise
revenue.It would be most likely to achieve this aim if the price
elasticity of demand for the good were
A high.
B infinite.C low.D unitary.
18. The diagram shows the demand for chocolate.
What could cause the movement from point X to point Y?A a change
in tastesB a fall in the price of chocolateC an increase in incomeD
a successful advertising campaign for chocolate
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19. The table shows the price of, demand for and supply of X per
week.
What will be the effect if the government imposes a minimum
price of $40 per tonne?A a fall in the price of XB a shortage of
X
C a surplus of XD a waiting-list for X
20. A bus company knows that demand for travel before 09 00
hours is inelastic and that after 09 00 hours it
is elastic.
How is the company certain to increase total revenue?
A by increasing all fares
B by increasing fares before 09 00 hours
C by reducing all fares
D by reducing fares before 09 00 hours
21. In many countries, extra staff are employed by the postal
service and additional collections of post are
made to clear the large amount of mail before holiday
periods.
What happens to the demand and supply curves for postal services
during these periods?
22. Which of the following is true for any inelastic demand
curve?
A A price cut causes a fall in expenditure.B A price rise has no
effect on demand.C A price rise has no effect on total profit.D The
percentage change in demand is greater than the percentage change
in price.
23. The graph shows the market for rice. It was in equilibrium
at X. Later, there is a very good harvest of
rice. What is the new equilibrium point?
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24. The diagram shows the demand for and supply of a product.
The original equilibrium is at X. Which point
indicates the new equilibrium position if there is an increase
in the price of a close substitute for the
commodity while other things remain the same?
25. The diagram shows the demand for and supply of a firm's
product. The original equilibrium is at X. The
firm pays for a successful advertising campaign.
What is the new equilibrium?
26. There are a fixed number of seats at a concert. Most of the
audience would continue to attend even if
the seat prices were increased. Which diagram represents this
situation?
27. The major oil producers sometimes try to raise the price of
oil.How would this be shown on a demand and supply diagram?
A a movement along the demand curve to the rightB a shift in the
supply curve to the rightC a shift in the demand curve to the leftD
a shift in the supply curve to the left
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28. The graph shows the market for unskilled workers in a city.
The original equilibrium is at X.
What would be the new equilibrium if there was a migration of
workers to the city?
29. The diagram shows the market for bicycles. The demand for
bicycles increases and at the same timemanufacturers are able to
cut costs through new production methods.
According to the diagram, what would be the result of these
changes?
30. IfSunshine Oranges were successfully advertised with the
statement They help you live longer, whichwould be likely to
occur?
Prepared by:
Mohammed Aslam
Economics Teacher
[email protected] K.THULUSDHOO
