The market demand curve for overseas cruises will not shift when there is a
Answers
34. Combination of capital (K) and labor (L) lies to the right of the firm’s cost line. It means that the combination is
A: Insufficient, given the budget
B: Undesirable
C: Inferior to the points within the contrast in terms of production
D: Unattachable, given the budget
E: Efficient, given the budget
35. Every point that lies to the right of the consumer’s budget constraint is
A: Unattainable, given the current income
B: Undesirable
C: Inefficient, given current income
D: Inferior to the points within the constraint in terms of utility
E: Insufficient, given current production
36. Which of the following does not cause a shift in the demand curve.
A: Changes in the price of related goods
B: Changes in the consumer patterns
C: Changes in the price of the goods
D: Changes in the personal preferences
E: Changes in the income of buyers
37. Market equilibrium occurs when
A: Quantity demanded equals quantity supplied
B: The price which sellers ask for goods is less than the price consumers pay for those goods
C: A shortage exists
D: Demand is greater than supply
E: Demand is less than supply
38. One of the reasons for the existence of natural monopoly is
A: Economies of scale
B: Lower fixed cost requirement
C: Diminishing marginal rate of productivity
D: Formation of cartels
E: Downward sloping demand curve
What would cause a demand curve to shift to the right?
Demand curve would shift to right whenever there is an increase in demand.
Increase in demand refers to the situation when demand of any product increases at a given price, or same demand at a higher price due to favorable changes in factors other than price of goods.
The reasons for this shift maybe:
Increase in the income of consumer.
Increase in the price of substitute goods.
Fall in the price of complementary goods.
Consumer’s taste becoming stronger in favor of that product.