BA1 Exam Dumps - Fundamentals of Business Economics

The demand curve would shift to the right, the equilibrium price would rise and there would be an increase in supply

The demand curve would shift to the left, the equilibrium price would fall and there would be a contraction in supply

The demand curve would shift to the right, the equilibrium price would rise and there would be an extension in supply

The demand curve would shift to the left, the price would fall and there would be a decrease in supply

The operation of a cartel

A merger between the two dominant firms in an industry

A price fixing agreement between two rival firms

An advertising campaign directly targeting rival firms

imposing an indirect tax on the good

paying a subsidy to the producers of the good

paying a subsidy to the consumers of the good

increasing the tax on the profits of the producing firms

There are few close substitutes for salt

Salt is a small proportion of household expenditure

Salt is a necessity

Supply rises quickly if demand rises because salt is easy to make

Steel

Second-hand cars

Public transport

Motor insurance

The demand curve to the right

The supply curve to the right

The demand curve to the left

The supply curve to the left

Firms will acquire control of their sources of supply

Mergers lead to large companies and economies of scale

Such mergers result in increased concentration in industries

It is against consumer interests for producers to acquire control of retail outlets

Marginal revenue is zero

Marginal revenue equals marginal cost

Price equals marginal revenue

Total cost equals total revenue