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Other things held constant, the greater the price of a good
Correct answer(s):
- the lower the consumer surplus.
Suppose the demand for good X is given by…..
Correct answer(s):
- none of the statements associated with this question are correct.
Suppose the demand for good X is given by Qd x = 10 + axPx + ayPy + aMM. If aM is negative, then good y is:
Correct answer(s):
- an inferior good.
Suppose the demand for good X is given by Qd x = 10 + axPx + ayPy + aMM. If ay is positive, then:
Correct answer(s):
- goods y and x are substitutes.
Suppose the demand for good X is given by Qd x = 10 + axPx + ayPy + aMM. From the law of demand we know that ax will be:
Correct answer(s):
- less than zero.
The demand function recognizes that the quantity of a good consumed depends on:
Correct answer(s):
- demand shifters and price.
Which of the following can explain an increase in the demand for housing in retirement communities?
Correct answer(s):
- An increase in the population of the elderly.
Persuasive advertising influences demand by:
Correct answer(s):
- altering the underlying tastes of consumers.
Graphically, a decrease in advertising will cause the demand curve to:
Correct answer(s):
- shift leftward.
If A and B are complements, an increase in the price of good A would:
Correct answer(s):
- lead to a decrease in demand for B.
If A and B are complements, an increase in the price of good A would:
Correct answer(s):
- lead to a decrease in demand for B.
Which of the following pairs of goods are probably complements?
Correct answer(s):
- hamburgers and ketchup.
An increase in the price of steak will probably lead to:
Correct answer(s):
- an increase in demand for chicken.
Which of the following is probably not a normal good?
Correct answer(s):
- macaroni and cheese.
Good A is an inferior good, an increase in income leads to:
Correct answer(s):
- a decrease in the demand for good A.
A change in income will not lead to:
Correct answer(s):
- a movement along the demand curve.
Changes in the price of good A leads to a change in:
Correct answer(s):
- the quantity demanded of good A.
Which of the following would not shift the demand for good A?
Correct answer(s):
- drop in price of good A.
The law of demand states that, holding all else constant:
Correct answer(s):
- as price falls, quantity demanded rises.
The buyer side of the market is known as the:
Correct answer(s):
- demand side.