Question 1

If a decrease in income increases the demand for a good,then the good is a(n)

Accepted Answer

An inferior good is a good for which demand decreases as income increases. Therefore, if a decrease in income increases the demand for a good, the good must be an inferior good.

Question 2

Suppose that Amanda receives a pay increase.We would expect

Accepted Answer

The answer of Suppose that Amanda receives a pay increase.We...

Question 3

If a increase in income decreases the demand for a good,then the good is a(n)

Accepted Answer

An inferior good is a good for which demand decreases as income increases. Therefore, if an increase in income decreases the demand for a good, it is an inferior good.

Question 4

If muffins and bagels are substitutes,a higher price for bagels would result in a(n)

Accepted Answer

The answer of If muffins and bagels are substitutes,a higher...

Question 5

A likely example of substitute goods for most people would be

Accepted Answer

The answer of A likely example of substitute goods for...

Question 6

Good X and good Y are substitutes.If the price of good Y increases,then the

Accepted Answer

The answer of Good X and good Y are substitutes.If...

Question 7

A higher price for batteries would result in a(n)

Accepted Answer

The answer of A higher price for batteries would result...

Question 8

Suppose that when income rises,the demand curve for doctor's visits shifts to the right.In this case,we know doctor's visits are

Accepted Answer

When income rises, the demand curve for normal goods shifts to the right, which implies that doctor's visits are a normal good.

Question 9

Soup is an inferior good if the demand

Accepted Answer

An inferior good is a type of good whose demand decreases when consumer income rises. As soup is a basic and inexpensive food, it can be considered an inferior good. When consumers' income rises, they may opt for more expensive or varied types of food, and demand for soup will decrease. Therefore, option D is the correct answer. A, B, and C are incorrect because they do not describe the characteristics of an inferior good.

Question 10

If American cheese and cheddar cheese are substitutes,then which of the following would increase the demand for cheddar cheese?

Accepted Answer

The answer of If American cheese and cheddar cheese are...

Question 11

Two goods are substitutes when a decrease in the price of one good

Accepted Answer

When two goods are substitutes, a decrease in the price of one good makes it more attractive relative to the other, thus decreasing the demand for the other good as consumers switch their preferences.

Question 12

Currently you purchase ten frozen pizza per month.You will graduate from college in December,and you will start a new job in January.You have no plans to purchase frozen pizzas in January.For you,frozen pizzas are a(n)

Accepted Answer

An inferior good is a good for which demand decreases as consumer income rises. Since you have no plans to purchase frozen pizza after you start your new job, it can be inferred that frozen pizza is an inferior good for you as your income will increase after you graduate and start your new job.

Question 13

If macaroni and cheese is an inferior good,then an increase in

Accepted Answer

The answer of If macaroni and cheese is an inferior...

Question 14

You wear either shorts or sweatpants every day.You notice that sweatpants have gone on sale,so your demand for

Accepted Answer

The answer of You wear either shorts or sweatpants every...

Question 15

If goods A and B are complements,then an increase in the price of good A will result in

Accepted Answer

Complementary goods are goods that are typically consumed together, so an increase in the price of one will lead to a decrease in demand for the other. Therefore, an increase in the price of good A will result in less of good B being sold.

Question 16

A likely example of complementary goods for most people would be

Accepted Answer

Chips and salsa are a likely example of complementary goods for most people because they are often consumed together as a snack or appetizer. They are considered complementary goods because the consumption of one (e.g. chips) tends to increase the demand for the other (e.g. salsa).

Question 17

If a good is inferior,then an increase in income will result in

Accepted Answer

An inferior good is one that people consume less of as their income increases. Therefore, an increase in income will lead to a decrease in the demand for the good, resulting in a movement down and to the left along the demand curve.

Question 18

Suppose that a decrease in the price of good X results in fewer units of good Y being demanded.This implies that X and Y are

Accepted Answer

The answer of Suppose that a decrease in the price...

Question 19

Which of the following would shift the demand curve for gasoline to the right?

Accepted Answer

The answer of Which of the following would shift the...

Question 20

Two goods are complements when a decrease in the price of one good

Accepted Answer

The answer of Two goods are complements when a decrease...

Quiz 4: The Market Forces of Supply and Demand