An ad valorem tax shifts the supply curve
Subject: Managerial Economics Multiple Choice Quiz ( MCQ ) and Answer
An excise tax shifts the supply curve
As additional firms enter an industry, the market supply curve
If the price of an input rises, producers are willing to produce
Which of the following is not a supply shifter?
The market supply curve indicates the total quantity all producers in a competitive market would produce at each price,
If the price of good X becomes lower, then the level of consumer surplus becomes
Consumer surplus is
The demand function
If consumers expect future prices to be higher
Which of the following statements is incorrect?
Advertising can influence demand by altering tastes of consumers. This type of advertising is known as
Advertising provides consumers with information about the underlying existence or quality of a product. These types of advertising messages are called
Firms advertise in order to cause the demand for their products to
Which of the following are least likely to be complements?
Good Y is a complement to good X if an increase in the price of good Y leads to
Which of the following are least likely to be substitutes?
Suppose that good X is a substitute for good Y. Then an increase in the price of good Y leads to
An inferior good is a good
Suppose good X is a normal good. Then a decrease in income would lead to
Which of the following is least likely to be a normal good?
Good X is a normal good if an increase in income leads to