Demand, Supply, and Market Equilibrium

If a consumer has more money to spend, he would prefer a good quality product, so the demand for inferior goods will decrease.

When the supply does not change with the change in price, PES is perfectly inelastic or zero. In the question, supply of potatoes is not changing with the change in price. Hence, it is the right answer.

Demand curve shifts from left to right when demand increases at the same price level.

This answer is right because in the question, there is remaining stock, which is yet to be sold.

Substitutes are those goods which can be used with ease in place of one another. For example, tea and coffee, ink pen and ball pen, are substitutes for each
other and can be used in place of one another easily. When goods are substitutes, a fall in the price of one leads to a fall in the quantity demanded of its substitutes.
They have positive cross elasticity of demand.
This is the correct answer.

Equilibrium occurs when demand and supply are equal.

% change in quantity demanded = (8 - 10)/10 = -0.20 = -20%
% change in price = (25-20)/20 = 0.25 = 25%
Elasticity = |( -20%)/(25% )| = |-0.8| = 0.8
 

An increase in the price of other shampoos must have increased the demand for the given shampoo. An increase in demand will lead to increase in the price of shampoo to attain equilibrium. Hence, this is the correct answer.

This is not a prediction of demand or supply theory.

This answer is correct because efficient technology will lead to an increase in production.

This answer is correct because an increase in future price will lead the consumers to buy more in the present time. This leads to an increase in demand.

This answer is correct because in the question, supply of computers is more than the demand.

Due to more supply and less demand, price of a product falls.

If a labourer has high productivity, the firm will not like to replace him.

Price is calculated on the basis of quantity of goods demanded and the quantity of goods supplied. This is the correct answer.