Edexcel A Level Business 1.2 Shifts in demand and supply

What happens to the demand curve for a product when consumer income increases, assuming the product is a normal good?

• The demand curve shifts to the left.

• The demand curve shifts to the right.

• The demand curve becomes steeper.

• The demand curve becomes flatter.

If the price of a substitute good decreases, what is the likely effect on the demand curve for the original good?

• The demand curve shifts to the right.

• The demand curve shifts to the left.

• The demand curve remains unchanged.

• The demand curve becomes vertical.

Which of the following factors would cause a shift to the right in the supply curve for a product?

• An increase in the cost of raw materials.

• A technological advancement in production.

• An increase in taxes on the product.

• A decrease in the number of suppliers.

How does an increase in the price of complementary goods affect the demand curve for a product?

• The demand curve shifts to the right.

• The demand curve shifts to the left.

• The demand curve becomes steeper.

• The demand curve becomes flatter.

What is the effect on the supply curve if there is an improvement in production technology?

• The supply curve shifts to the left.

• The supply curve shifts to the right.

• The supply curve becomes steeper.

• The supply curve becomes flatter.

If the government imposes a subsidy on the production of a good, what is the likely effect on the supply curve?

• The supply curve shifts to the left.

• The supply curve shifts to the right.

• The supply curve becomes steeper.

• The supply curve becomes flatter.

What happens to the demand curve for a product if there is a successful advertising campaign for it?

• The demand curve shifts to the left.

• The demand curve shifts to the right.

• The demand curve becomes steeper.

• The demand curve becomes flatter.

Which of the following would cause a leftward shift in the supply curve for a product?

• A decrease in the cost of production.

• An increase in the number of suppliers.

• An increase in the cost of raw materials.

• A technological improvement in production.

If there is an expectation of future price increases, what is the likely effect on the current supply curve?

• The supply curve shifts to the left.

• The supply curve shifts to the right.

• The supply curve becomes steeper.

• The supply curve becomes flatter.

How does a decrease in consumer preferences for a product affect its demand curve?

• The demand curve shifts to the right.

• The demand curve shifts to the left.

• The demand curve becomes steeper.

• The demand curve becomes flatter.