The Multiple Choice Questions Blog

A negative value for the cross elasticity of demand between two goods indicates

Select ONE answer:

1. that one of the goods is normal and the other is inferior.
2. that the goods are substitutes.
3. that the goods are complements.
4. that each good is price inelastic.

Explain how changes in the prices of substitutes and complementary goods may cause a shift in the demand curve:

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 3

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In the above figure, if the two goods, A and B, are complements, which of the following is true?

Select ONE answer:

1. The cross elasticity of demand between them is positive.
2. The shift from S0 to S1 for good A lead to the shift from D0 to D1 for good B.
3. The shift from D0 to D1 for good B lead to a shift from S0 to S1 for good A.
4. The law of demand is at work in both markets.

Show your workings to arrive at your answer, and explain and justify your reasons:

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 2

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If the cross elasticity of demand is -5 between french fries and orange drink, then french fries

Select ONE answer:

1. and orange drink are substitutes.
2. are a normal good and orange drink is an inferior good.
3. and orange drink are complements.
4. are an inferior good and orange drink is a normal good.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 3

This work is licensed under a Creative Commons Attribution 4.0 International License.

The cross elasticity of demand for pizza with respect to the price of a soda is

Select ONE answer:

1. negative because the goods are complements.
2. positive because the goods are complements.
3. negative because the goods are substitutes.
4. positive because the goods are substitutes.

What is the the distinction between movements along a demand curve and shifts of a demand curve?

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 1

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The demand for ________ is more elastic than the demand for ________.

Select ONE answer:

1. Pepsi; all soft beverages
2. food; exotic vacations
3. all personal computers; Dell computers
4. chewing gum; cars

What is the implication on demand of consumer objectives and decisions?

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 1

This work is licensed under a Creative Commons Attribution 4.0 International License.