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A B C D 13 Which one of the following would cause the supply curve for a good to shift to the right (outwards from the origin)? A B C D 14 Excess demand A shortage of the good A surplus of the good An increase in demand Which one of the following would not lead directly to a shift in the demand curve for overseas holidays? A B C D 28 A fall in the price of the good An increase in the demand for the good A fall in production costs of the good The imposition of a minimum price When the price of a good is held above the equilibrium price, the result will be A B C D 15 Excess of demand over supply Excess of supply over demand An increase in price Nothing Questions An advertising campaign by holiday tour operators A fall in the disposable incomes of consumers A rise in the price of domestic holidays A rise in the price of overseas holidays 16 Which of the following is likely to lead to a fall in the price of good Q which is a normal good?

1 2 3 4 15 Which of the following would not cause cost curves to shift? A B C D 16 Economies of scale Diseconomies of scale Optimal output Constant returns to scale Technological advances Changes in labour efficiency Changes in demand Increased cost of factors of production It is possible for the average total cost curve to be falling while the average variable cost curve is rising. True False 17 Fill in the gap. Economies of scale that affect a whole industry are called ........................................

All factors of production are fixed. Capital used in production is fixed. Questions Minimum efficient scale is reached Short-run variable costs begin to rise Diminishing returns to a limited factor of production begin to occur Long-run average costs begin to rise 36 37 38 Which of the following propositions are false? 1 It is possible for the average total cost curve to be falling while the average variable cost curve is rising. 2 It is possible for the average total cost curve to be rising while the average variable cost curve is falling.

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