Question 1

For a typical product, an increase in consumer income will cause the market demand for the product to

Accepted Answer

An increase in consumer income typically increases the demand for a product, shifting the demand curve to the right.

Question 2

For a typical product, a decrease in consumer income will cause the market demand for the product to

Accepted Answer

A decrease in consumer income generally leads to a decrease in market demand for a typical product, causing the demand curve to shift to the left.

Question 3

If people expect the price of shorts to rise next month, the demand for shorts will

Accepted Answer

If people expect the price of shorts to rise next month, they are likely to buy more now to avoid paying a higher price later, thus increasing the current demand.

Question 4

Other things constant, an increase in consumer income will

Accepted Answer

An increase in consumer income generally increases the demand for normal goods, such as automobiles, shifting the demand curve to the right.

Question 5

In which statement(s) are "demand" and "quantity demanded" used correctly? (I) "An increase in the price of tea will reduce the quantity demanded of tea."
(II) "An increase in the price of tea will reduce the demand for sugar used in tea."

Accepted Answer

Statement I correctly uses "quantity demanded" as it refers to the change in the amount of tea consumers are willing to buy due to a price change. Statement II correctly uses "demand" as it refers to the overall demand for sugar, which can decrease if the price of tea increases, affecting complementary goods.

Question 6

Other things constant, a decrease in consumer income will

Accepted Answer

A decrease in consumer income typically reduces the demand for normal goods, such as large-screen television sets, shifting the demand curve to the left.

Question 7

Which of the following best represents the effects of a decrease in the price of belts, other things being equal?

Accepted Answer

A decrease in the price of belts leads to a downward movement along the demand curve, indicating an increase in quantity demanded, not a shift of the curve itself.

Question 8

In which statement(s) is "demand" used correctly? (I) "An increase in the price of hamburgers will reduce the demand for hamburgers."
(II) "An increase in the price of hamburgers will reduce the demand for hamburger buns."

Accepted Answer

The answer of In which statement(s) is "demand" used correctly?...

Question 9

When economists say the demand for a product has increased, they mean the

Accepted Answer

An increase in demand means that at every price level, consumers are willing to purchase more of the product, which is represented by a rightward shift of the demand curve.

Question 10

Which of the following would lead to an increase in the demand for computer software?

Accepted Answer

A decrease in the price of personal computers can lead to an increase in the demand for computer software because computers and software are complementary goods. When the price of computers falls, more people are likely to buy computers, which in turn increases the demand for software.

Question 11

When economists say the quantity demanded of a product has decreased, they mean the

Accepted Answer

A decrease in quantity demanded refers to a movement along the demand curve due to a rise in the product's price, leading consumers to buy less of it.

Question 12

If consumer tastes are changing more in favor of the consumption of a particular good the

Accepted Answer

When consumer tastes change in favor of a good, the market demand curve shifts to the right, indicating an increase in demand at every price level.

Question 13

When economists say the demand for a product has decreased, they mean

Accepted Answer

A decrease in demand means the demand curve has shifted to the left, indicating that consumers are willing and able to purchase less of the product at each possible price.

Question 14

An increase in the demand for a good means that

Accepted Answer

An increase in demand means that at every price level, consumers are willing to buy more of the good, which is represented by a rightward shift of the demand curve.

Question 15

When economists say the quantity demanded of a product has increased, they mean the

Accepted Answer

An increase in quantity demanded refers to a movement along the demand curve due to a decrease in the product's price, leading consumers to buy more.

Question 16

Other things being equal, the effect of an increase in the price of milk would be illustrated by

Accepted Answer

An increase in the price of milk would cause an upward movement along the demand curve, indicating a decrease in quantity demanded, not a shift of the curve itself.

Question 17

In a typical college town, when students go home for the summer, the demand for many items such as pizza and textbooks

Accepted Answer

When students leave for the summer, the demand for items like pizza and textbooks decreases, causing a leftward shift in the demand curves for these goods.

Question 18

Which of the following would lead to an increase in the demand for designer blue jeans?

Accepted Answer

An increase in the income of youthful Americans would likely lead to an increase in the demand for designer blue jeans, as they would have more disposable income to spend on such luxury items.

Question 19

Other things being equal, the effect of a decrease in the price of grapes would be illustrated by

Accepted Answer

A decrease in the price of grapes leads to an increase in the quantity demanded, not a shift in the demand curve.

Question 20

An increase in the price of a good would

Accepted Answer

An increase in the price of a good would decrease the quantity demanded for the good, as consumers are less likely to purchase a good when its price is higher.

Quiz 3: Demand, Supply, and the Market Process