An upward movement along the same supply curve results in
An increase in supply
A decrease in price
A decrease in quantity supplied
An increase in quantity supplied
Correct answer is D
A movement along the supply curve happens when the price of a commodity changes while other factors remain constant.
An upward movement along the supply curve indicates an Increase in quantity supplied of a commodity due to rise in its price, while a downward movement means a decrease in quantity supplied due to fall in prices.
Rationality
Surplus
Sovereignty
Credit
Correct answer is B
Surplus in economics refers to the difference between price consumers pay and what they would be willing to pay.
Diminishing marginal utility implies that
Total utility decreases as consumption increases
Marginal utility increases as consumption increases
Marginal utility deceases as consumption increase
Marginal utility decreases as consumption decreases
Correct answer is C
Diminishing marginal utility explains that as a person consumes an item or a product, the satisfaction or utility that they derive from the product reduces as they consume more and more of that product. This means that the satisfaction that is meant to be derived from consuming an additional unit of a commodity reduces as you consume more of that commodity.
As long as marginal utility is positive, total utility must be
Negative
Increasing
Zero
Decreasing
Correct answer is B
When marginal utility diminishes but stays positive, then total utility increases at a decreasing rate as it is the summation of all marginal utilities.
This is because positive marginal utility occurs when the consumption of an additional item increases the total utility. Hence whenever marginal utility is positive, total utility increases.
If the demand elasticity coefficient of cars is 0.5, it implies that the demand for petrol is
Elastic
Perfectly inelastic
Inelastic
Perfect elastic
Correct answer is C
If the demand elasticity coefficient is less than 1, that is (0.4, 0.5, etc) it means the demand is inelastic. This means that the change in price had little impact on the quantity demanded.