Microeconomics Multiple Choice Questions And Answers Doc 'link' Direct

Explanation: Consumers switch from expensive coffee to cheaper tea, shifting tea demand right.

If a demand curve is perfectly vertical, the own-price elasticity of demand is: (A) Infinity (D) None of the above Correct Answer: microeconomics multiple choice questions and answers doc

Explanation: Income elasticity = +0.5 → normal good, necessity (demand rises slower than income). increasing price B) Right

An improvement in baking technology will shift the supply curve for bread: A) Left, increasing price B) Right, decreasing price ✅ C) Left, decreasing quantity D) Right, increasing price decreasing price ✅ C) Left