WHSS Combat

What is most likely to influence the price elasticity of demand for a food?

A a change in consumer tastes

B the number of close substitutes

C the rate of inflation

D whether the food can be stored easily

• A

• B

• C

• D

The diagram shows the market for refined oil with equilibrium of X. What will be the new equilibrium when a major oil refinery shuts down for repair work?

• A

• B

• C

• D

What is meant by the equilibrium quantity in the market for a product?

A the average quantity produced over the year

B the average quantity sold over the year

C the quantity at which profit occurs

D the quantity at which the demand and supply curves intersect

• A

• B

• C

• D

The following is a headline from the newspaper.

What will result from an increased tax on cars?

A increased employment in the car industry

B increased petrol (gas) sales

C reduced external costs of car use

D reduced number of bus journeys

• A

• B

• C

• D

Asda, a supermarket chain, noticed a regular, sharp decrease in sales in the third week of the month as people ran out of cash before their next wage payment. The supermarket offered their biggest price reductions at that time. Why might this policy increase total revenue?

A because consumers’ demand curve shifts to the left in the third week of the month

B because consumers’ demand curve shifts to the right in the third week of the month

C because the price elasticity of demand for Asda’s products decreases in the third week of the month

D because the price elasticity of demand for Asda’s products increases in the third week of the month

• A

• B

• C

• D

What would cause a movement down the demand curve for cars?

A a fall in the price of cars

B a fall in the price of petrol

C a rise in the price of car insurance

D a rise in the price of public transport

• A

• B

• C

• D

ussia is the world’s third largest exporter of grain but much of the country’s farmland was damaged by fire in 2010. How would this be represented on demand and supply diagrams for the Russian grain market and for a country importing Russian grain?

• A

• B

• C

• D

A supply curve shows the relationship between the quantity supplied and

A company profits.

B the demand for the product.

C the output of the product.

D the price of the product.

• A

• B

• C

• D

What is likely to increase the supply of fish brought to market?

A a decrease in the number of fishing vessels operating

B the imposition of a quota on the import of fish

C the imposition of a sales tax on fish

D a decrease in the cost of building fishing vessels

• A

• B

• C

• D

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?

• A

• B

• C

• D