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Which of the following are least likely to be substitutes?
Correct answer(s):
- Automobile and gasoline.
Suppose that good X is a substitute for good Y. Then an increase in the price of good Y leads to
Correct answer(s):
- an increase in the demand of good X.
An inferior good is a good
Correct answer(s):
- that consumers purchase less of when their incomes are higher.
Suppose good X is a normal good. Then a decrease in income would lead to
Correct answer(s):
- an outward shift of the demand curve.
Which of the following is least likely to be a normal good?
Correct answer(s):
- Bologna
Good X is a normal good if an increase in income leads to
Correct answer(s):
- an increase in the demand for good X.
Changes in the price of other goods lead to
Correct answer(s):
- a change in demand.
Demand shifters do not include
Correct answer(s):
- the price of the good.
The law of demand states that if the price of a good falls and all other things remain the same, the
Correct answer(s):
- quantity demanded of the good rises.
Suppose both supply and demand decrease. What effect will this have on price?
Correct answer(s):
- It will rise.
Suppose that supply increases and demand decreases. What effect will this have on price and quantity?
Correct answer(s):
- None of the statements associated with this question are correct.
Suppose you produce wooden desks, and government….
Correct answer(s):
- Price will increase but quantity will decrease.
If steak is a normal good, what do you suppose would happen to price and quantity during an economic recession?
Correct answer(s):
- Price and quantity would both decrease.
Suppose market demand and supply are…..
Correct answer(s):
- $1,650.
Suppose market demand and supply are given by Qd = 100 – 2P and QS = 5 + 3P. If a price floor of $30 is set, what will be size of the resulting surplus?
Correct answer(s):
- 55
The minimum legal price that can be charged in a market is:
Correct answer(s):
- a price floor.
Suppose market demand and supply are given by Qd = 100 – 2P and QS = 5 + 3P. If a price ceiling of $15 is imposed, what will be the resulting full economic price?
Correct answer(s):
- $25
Suppose market demand and supply are given by Qd = 100 – 2P and QS = 5 + 3P. If a price ceiling of $15 is imposed,
Correct answer(s):
- there will be a shortage of 20 units.
The maximum legal price that can be charged in a market is:
Correct answer(s):
- a price ceiling.
Suppose market demand and supply are given by Qd = 100 – 2P and QS = 5 + 3P. The equilibrium quantity is:
Correct answer(s):
- 62