Question 1

If goods X and Y are substitutes and the price of X falls,all other things being equal,the demand curve for Y will

Accepted Answer

When the price of substitute good X falls, consumers are more likely to switch from Y to X, as X becomes relatively cheaper than Y. This leads to a decrease in the demand for Y, resulting in a leftward shift in the demand curve for Y.

Question 2

"Demand" in a particular market refers to

Accepted Answer

"Demand" in a particular market refers to the entire relationship between quantity demanded and price. This includes the quantity that is desired but not satisfied by current supply, the quantity purchased at the current market price, and the potential quantity that would be purchased at different prices.

Question 3

Consider butter and margarine,which are substitutes.When the price of butter falls,the demand curve for margarine is likely to

Accepted Answer

When the price of butter falls, people are likely to buy more butter instead of margarine, since they are substitutes. This leads to a decrease in the demand for margarine, causing its demand curve to shift to the left.

Question 4

When deriving the market demand curve for a commodity,the only variable(s)that can change is (are)the

Accepted Answer

When deriving the market demand curve for a commodity, the only variable(s) that can change are the quantity of the commodity demanded and the price of the commodity. The quantity demanded can change due to factors such as changes in consumer preferences, changes in population, or changes in advertising. The price of the commodity can change due to factors such as changes in production costs or changes in supply. Other variables such as the price of a related commodity or income of consumers are held constant when deriving the market demand curve.

Question 5

Which of the following pairs of goods are likely to be substitutes for a large group of consumers?

Accepted Answer

Substitutes are goods that can be used in place of each other. Green beans and peas serve similar nutritional purposes and can be easily substituted for one another in meals, making them likely substitutes for a large group of consumers.

Question 6

Which of the following would cause a movement along the demand curve for ski-lift tickets,other things being equal?

Accepted Answer

An increase in price as the supply curve for lift tickets shifts to the left would cause a movement along the demand curve for ski-lift tickets as consumers would likely purchase fewer lift tickets at the higher price. Changes in tastes, prices of related goods, income, and population would all cause shifts in the demand curve, not movements along it.

Question 7

In which statement is the term "demand" used correctly? (1)A decrease in the price of airline tickets led to an increase in quantity demanded for airline tickets.(2)A decrease in the price of airline tickets led to an increase in the demand for airline tickets.

Accepted Answer

The term "demand" refers to the overall desire or willingness of consumers to purchase a good or service at various prices, while "quantity demanded" refers to the specific amount of a good or service consumers are willing to buy at a particular price. Statement (1) correctly uses "quantity demanded" to describe the change in the amount purchased as a result of a change in price, which is consistent with the law of demand. Statement (2) incorrectly suggests that the demand curve itself shifts due to a change in the price of the good, which is a misunderstanding. Demand changes in response to factors other than the good's own price, such as income or preferences.

Question 8

A change in which of the following variables will result in NO change in the demand for a given commodity?

Accepted Answer

The demand for a commodity is influenced by factors such as average household income, the distribution of income, population, and tastes in favor of the commodity. However, a change in the price of the commodity itself does not change the demand for it; instead, it changes the quantity demanded. Demand refers to the desire and ability of consumers to purchase goods at different prices, while quantity demanded refers to the specific amount of goods consumers are willing to buy at a specific price.

Question 9

A variable that is assumed to be constant along an individual's demand curve for good X is the

Accepted Answer

The answer of A variable that is assumed to be...

Question 10

In which statement is the term "demand" used correctly? (1)An increase in the price of copper will lead to a decrease in the demand for copper.(2)An increase in the price of copper will lead to an increase in the demand for aluminum (a substitute for copper).

Accepted Answer

The answer of In which statement is the term "demand"...

Question 11

In which statement is the term "demand" used correctly? (1)An increase in the price of eggs will lead to a decrease in the demand for eggs.(2)An increase in the price of eggs will lead to a decrease in the demand for bacon.

Accepted Answer

The answer of In which statement is the term "demand"...

Question 12

Cars and gasoline are likely to be

Accepted Answer

Cars and gasoline are complementary goods because they are often used together - cars require gasoline to operate. When the demand for cars increases, the demand for gasoline also increases. Therefore, if the price of cars rises, the demand for gasoline will also be affected.

Question 13

If the price of tea falls and as a consequence the demand for sugar rises,then tea and sugar are

Accepted Answer

Tea and sugar are complementary goods because the demand for one increases when the price of the other decreases, indicating that they are used together.

Question 14

Which of the following pairs of goods are likely to be complements for a large group of consumers?

Accepted Answer

E-readers and e-books are complements because the use of one (e-readers) increases the use of the other (e-books).

Question 15

If goods X and Y are complements and the price of X falls,all other things being equal,the demand curve for Y will

Accepted Answer

If the price of complement good X falls, its demand will increase, which in turn will increase the demand for complement good Y. This will cause a shift in the demand curve of Y to the right. Therefore, the correct answer is B.

Question 16

Consider cars and gasoline.Other things being equal,when the price of cars decreases,the demand for gasoline is likely to

Accepted Answer

When the price of cars decreases, it becomes more affordable for people to buy cars, which in turn increases the number of cars on the road. Since cars require gasoline to operate, the demand for gasoline is likely to increase as well. Cars and gasoline are complements because the use of one (cars) increases the use of the other (gasoline).

Question 17

Goods X and Y are defined to be substitutes in consumption if

Accepted Answer

Substitutes in consumption are goods that can be used in place of one another, therefore, the demand for one good will increase when the price of the other rises. This is represented by a direct relationship between the price of one good and the demand for the other. Therefore, option D is the correct choice.

Question 18

In which statement is the term "demand" used correctly? (1)An increase in the price of copper will lead to an increase in the demand for aluminum (a substitute for copper).(2)An increase in the price of aluminum will lead to a decrease in quantity demanded of aluminum.

Accepted Answer

The answer of In which statement is the term "demand"...

Question 19

If tastes change so that a particular style of boots is now considered more appealing,the likely result is

Accepted Answer

If tastes change and a particular style of boots becomes more appealing, consumers will likely want to purchase more of them, causing a shift in the demand curve to the right as they are willing to pay a higher price for them. This shift will lead to an increase in the equilibrium quantity and the equilibrium price.

Question 20

Ceteris paribus,the position of the demand curve for apples will remain unchanged if there is a change in the

Accepted Answer

A change in the price of apples results in a movement along the demand curve, not a shift in the position of the demand curve. Changes in factors such as income, prices of related goods (like pears), and consumer preferences (such as knowledge about health benefits) would shift the demand curve.

Quiz 3: Demand, Supply, and Price

If goods X and Y are substitutes and the price of X falls,all other things being equal,the demand curve for Y will

"Demand" in a particular market refers to

Consider butter and margarine,which are substitutes.When the price of butter falls,the demand curve for margarine is likely to

When deriving the market demand curve for a commodity,the only variable(s) that can change is (are) the

Which of the following pairs of goods are likely to be substitutes for a large group of consumers?

Which of the following would cause a movement along the demand curve for ski-lift tickets,other things being equal?

In which statement is the term "demand" used correctly? (1) A decrease in the price of airline tickets led to an increase in quantity demanded for airline tickets.(2) A decrease in the price of airline tickets led to an increase in the demand for airline tickets.

A change in which of the following variables will result in NO change in the demand for a given commodity?

A variable that is assumed to be constant along an individual's demand curve for good X is the

In which statement is the term "demand" used correctly? (1) An increase in the price of copper will lead to a decrease in the demand for copper.(2) An increase in the price of copper will lead to an increase in the demand for aluminum (a substitute for copper) .

In which statement is the term "demand" used correctly? (1) An increase in the price of eggs will lead to a decrease in the demand for eggs.(2) An increase in the price of eggs will lead to a decrease in the demand for bacon.

Cars and gasoline are likely to be

If the price of tea falls and as a consequence the demand for sugar rises,then tea and sugar are

Which of the following pairs of goods are likely to be complements for a large group of consumers?

If goods X and Y are complements and the price of X falls,all other things being equal,the demand curve for Y will

Consider cars and gasoline.Other things being equal,when the price of cars decreases,the demand for gasoline is likely to

Goods X and Y are defined to be substitutes in consumption if

In which statement is the term "demand" used correctly? (1) An increase in the price of copper will lead to an increase in the demand for aluminum (a substitute for copper) .(2) An increase in the price of aluminum will lead to a decrease in quantity demanded of aluminum.

If tastes change so that a particular style of boots is now considered more appealing,the likely result is

Ceteris paribus,the position of the demand curve for apples will remain unchanged if there is a change in the