The Following Table Shows the Demand For, and Supply Of

question 106

Multiple Choice

The following table shows the demand for, and supply of, soya milk in a particular market (the quantities are in thousands of liters per day) :
$$\begin{array} { l l l } \begin{array} { c} \text { \$ Price } \\\text { per litre }\end{array} & \text { Demand } & \text { Supply } \\1.80 & 160 & 142 \\1.90 & 156 & 144 \\2.00 & 152 & 146 \\2.10 & 148 & 148 \\2.20 & 144 & 150 \\2.30 & 140 & 152 \\2.40 & 136 & 154\end{array}$$
-If the demand curve is upward-sloping, what would be the effect of an increase in supply?

• A) An increase in supply would be impossible.
• B) It will reduce both the price and the quantity traded.
• C) It will increase both the price and the quantity traded.
• D) It will increase the quantity traded but will reduce the price.
• E) It might or might not increase the price and quantity traded depending on the comparative slopes of the curves.

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Definitions:

National Origins Act

A United States federal law enacted in 1924 that limited the number of immigrants who could be admitted from any country based on the number of people from that country who were already living in the U.S.

Immigration Quotas

Limits set by a country on the number or nationality of immigrants allowed to enter each year.

1890 Census

The United States federal census conducted in 1890, which notably included the first use of Herman Hollerith's mechanical tabulating machines, marking a significant advancement in data processing.

1928 Presidential Election

A United States presidential election where Republican Herbert Hoover won against Democrat Al Smith, significantly impacted by debates over Prohibition, religion, and the economy.