MI03 Leo Quiz

1.    What would cause the demand for furniture to shift to the right?

• Increase in productivity in the manufacturing of furniture  

• The government eases the housing loan policy

• Less sales of HDB homes and apartments due to a recession

• Population of Singapore decreases over years 

2.    What would happen to the price of cakes if the cost of eggs goes up due to bird flu scare?

• Remain unchanged

• Increase due to an increase in demand for eggs

• Decrease due to an increase in supply for eggs

• Increase due to a decrease in supply of eggs

3.    Suppose that the price of a new watch is $300.  Sue values a new watch at $400.  It costs $200 for the seller to produce the new watch.  What are the values of consumer surplus and producer surplus if Sue buys a new watch?

• Consumer surplus = $200; producer surplus = $200

• Consumer surplus = $200; producer surplus - $100

• Consumer surplus = $100; producer surplus = $100

• Consumer surplus = $100; producer surplus = $200

4. If at the current price, there is a surplus of cars,

• the price of car is below the equilibrium price

• the car market is in equilibrium

• producers are producing less cars than consumers wish to buy

• the price of car is above the equilibrium price

• a decrease in demand

• a decrease in quantity demanded

• an increase in demand

• an increase in quantity demanded

• decrease in the price of a good

• improvement in technology

• increase in input prices

• increase in income

7.    Suppose there is an increase in input prices. Then, we would expect _______________.

• supply to increase

• demand to increase

• supply to decrease

• supply and demand to remain unchanged