Quiz # 4

Applied Economics
I. Identify whether there is an increase or decrease in
price, demand or supply.

1. If the price increases, the demand will

_____________.
2. If the price increases, the supply will
_____________.
I. Identify whether there is an increase or decrease in
price, demand or supply.
3. The increase in the number of
substitutes/alternative products will result in
_____________ in demand and (4.) _____________ in
price.
5. The use of technology in production will cause
_____________ in supply and (6.) _____________ in
price.
I. Identify whether there is an increase or decrease in
price, demand or supply.

7. Surplus may cause price to _____________.

8. Shortage may cause price to
_____________.
9. Increase in income may _____________
demand.
I. Identify whether there is an increase or decrease in
price, demand or supply.

10.Increase in the cost of production (cost of

raw materials and labor) may result in
_____________ in supply.
11.The price of coffee is expected to increase
next week, the demand for coffee this week is
expected to _____________.
I. Identify whether there is an increase or decrease in
price, demand or supply.
12. The demand for umbrellas
_____________ during rainy season.
13.The price of product A increases so
the demand for its complementary
product will _____________.
I. Identify whether there is an increase or decrease in
price, demand or supply.
14.Because of the presence of internet,
DVDs now are out of the trend so the
demand for it _____________.
15.The demand for vitamin C increases so
the price _____________.
II. Given the demand schedule below, determine the elasticity in the different
situations. Show your solution: (3 points each – 1 point for the solution, 1 point
for the elasticity coefficient and 1 point for the elasticity)

1.Situation I and II 4. Situation V and VI

2.Situation II and III 5. Situation VI and VII
3.Situation III and IV