An ice cream cone costs £1.50. A can of pop costs 75 pence. The relative price of an ice cream cone is ________.

2 cans of pop
1/2 can of pop
75 pence
£1.50

Chicken and fish are substitutes. If the price of chicken increases, the demand for fish will ____________.

not change but there will be a movement along the demand curve for fish
decrease and the demand curve for fish will shift leftward
increase and the demand curve for fish will shift rightward
increase or decrease but the demand curve for chicken will not change

An increase in the number of sellers of bikes will increase the _____________.

the supply of inline skates
demand for inline skates, a substitute for bikes
demand for crash helmets, a complement of bikes
the price of a bike

In the market for fertilizer, an _________________.

increase in the wage rate will increase the supply of fertilizer
increase in the cost of equipment used to produce fertilizer will increase the supply of fertilizer
advance in technology will increase the supply of fertilizer
increase in the wage rate will increase the demand for fertilizer

The table shows the demand and supply schedules for jeans:

At £50 a pair, there is a surplus of jeans and the price will rise.
At £70 a pair, there is a shortage of jeans and the price will fall.
At £70 a pair, there is a surplus of jeans and the price will fall.
At £80 a pair, there is a shortage of jeans and the price will fall.

The figure illustrates the market for chocolates. At £8 a box, there is a _________ of chocolates and the price will ________.

surplus; rise
shortage; rise
surplus; fall
shortage; fall

You observe that the price of coffee has increased and the quantity has also increased. You predict that the demand for coffee has ________________.

increased with no change in the supply of coffee
increased less than supply of coffee has decreased
not changed but that the supply of coffee has decreased
increased but it is not as large as the increase in supply

Potato chips and popcorn are substitutes. An increase in the price of potato chips will ___________the demand for popcorn and the quantity of popcorn will ______________.

increase; increase
decrease; decrease
decrease; increase
increase; decrease

An increase in the wage rate paid to workers in the popcorn industry will _________________ popcorn and the equilibrium quantity of popcorn will _________________.

decrease the supply of; decrease
decrease the demand for; decrease
increase the demand for; increase
decrease the supply of; increase

If the supply of bottled water decreases, the equilibrium price ________________________ and the equilibrium quantity __________________.

increases; decreases
increases; increases
decreases; decreases
decreases; increases

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