Question 1

The demand for meals at a local Applebee's will shift to the left if:
A.the Olive Garden offers a 10% discount coupon in the local newspaper.
B.the price of a meal at Applebee's rises.
C.local incomes increase and Applebee's is a normal good.
D.the price of gasoline falls in the local area.

Accepted Answer

The answer of The demand for meals at a local...

Question 2

An increase in the demand for gasoline today caused by concerns that gasoline prices will be higher tomorrow is most likely attributable to which of the following?
A.income
B.consumer expectations
C.consumer preferences
D.prices of other goods

Accepted Answer

The answer of An increase in the demand for gasoline...

Question 3

Which will not increase demand for desktop computers?
A.an increase in the incomes of computer
B.users cool new computer games
C.Dell Computers going out of business
D.the price of notebook computers increasing

Accepted Answer

The answer of Which will not increase demand for desktop...

Question 4

Pizza is a normal good.If students' incomes at your college increase, the effect on pizza would be:
A.an increase in the demand.
B.an increase in the quantity demanded.
C.a decrease in the demand.
D.no change in the demand.

Accepted Answer

The answer of Pizza is a normal good.If students' incomes...

Question 5

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

Accepted Answer

An increase in college enrollment would lead to an increase in demand for new textbooks, shifting the demand curve to the right. An increase in college enrollment would result in a larger number of students needing new textbooks, causing the demand curve to shift to the right. A decrease in the price of paper or new textbooks or a fall in the price of used textbooks would not necessarily affect the demand for new textbooks.

Question 6

The demand curve for videos has shifted to the right.What could have caused it?

Accepted Answer

An increase in the incomes of buyers would shift the demand curve for videos to the right, as consumers have more disposable income and can afford to buy more videos. A fall in price (A) or an increase in supply (C) might also increase demand to some extent, but not as significantly as an increase in incomes. An increase in price (B) would have the opposite effect and shift the demand curve to the left. An increase in the incomes of buyers would lead to an increase in their purchasing power, which would increase their demand for videos.

Question 7

If chicken and beef are substitutes, then a fall in the price of chicken will bring about:
A.an increase in the demand for beef.
B.a decrease in the demand for beef.
C.a decrease in the quantity demanded of beef.
D.no change in the demand for beef.

Accepted Answer

If chicken and beef are substitutes, a fall in the price of chicken will make it more attractive to consumers, leading them to switch from beef to chicken. This means that the demand for beef will decrease as consumers opt for the cheaper substitute.

Question 8

An increase in the price of hamburger would probably result in in the demand for
hamburger buns.
A.a decrease
B.an increase
C.no change
D.random fluctuations

Accepted Answer

When the price of hamburger increases, people may be less likely to buy hamburgers, causing a decrease in demand for hamburger buns. This is because the two goods are complements, meaning they are typically consumed together.

Question 9

After graduation from college, you might have an increase in your income from a new job.If, as a result, you decide that you will purchase more T-bone steak and less hamburger, then for you hamburger would be considered:
A.a normal good.
B.a substitute good.
C.a complementary good.
D.an inferior good.

Accepted Answer

The answer of After graduation from college, you might have...

Question 10

Which of the following describes two goods that are most likely substitutes in consumption?

Accepted Answer

Loaves of bread and hamburger buns are both used as buns for sandwiches, so they are more likely to be substitutes in consumption. The other options have goods that are not directly related in their consumption. Loaves of bread and hamburger buns are both used as types of bread to make sandwiches, so they are likely substitutes in consumption. The other options do not have as strong of a relationship in terms of consumption.

Question 11

For most goods, purchases tend to rise with increases in buyers' incomes and to fall with decreases in buyers' incomes.Such goods are known as:
A.inferior goods.
B.direct goods.
C.normal goods.
D.indirect goods.

Accepted Answer

The answer of For most goods, purchases tend to rise...

Question 12

If steak and potatoes are complements, when the price of steak goes up, the demand curve for potatoes:
A.shifts to the right.
B.shifts to the left.
C.stays the same.
D.shifts to the right and then moves back.

Accepted Answer

Since steak and potatoes are complements, they are consumed together. If the price of steak goes up, the demand for steak will decrease, causing the demand curve for potatoes to shift to the left because people will buy fewer potatoes to go with their more expensive steak.

Question 13

Which of the following is likely to cause a rightward shift in the demand for home-delivered pizza?
A.a lower price of pizza
B.a lower price of fast-food hamburgers
C.a higher price of pepperoni
D.a larger population

Accepted Answer

A larger population means that there are more potential customers for home-delivered pizza, which would increase the demand and shift it to the right. A lower price of pizza (A) would result in a movement along the demand curve, but would not shift it. A lower price of fast-food hamburgers (B) would not affect the demand for home-delivered pizza. A higher price of pepperoni (C) may decrease the demand for pizza but would not shift the demand curve to the right.

Question 14

An announcement that smoking will harm your ability to think clearly will most likely result in:

Accepted Answer

The announcement that smoking will harm your ability to think clearly is likely to be seen as a negative consequence of smoking, which could lead to a decrease in the demand for cigarettes. People may become more aware of the harm smoking does to their overall health and well-being, and this could motivate them to quit or reduce their smoking habits. Awareness of the harmful effects of smoking on cognitive abilities is likely to decrease the demand for cigarettes as people may prioritize their cognitive abilities over their addiction to cigarettes. This is supported by research that shows that health warnings and education campaigns can effectively reduce smoking rates.

Question 15

A good is normal if which of the following is true?
A.When income increases, the demand remains unchanged.
B.When income increases, the demand decreases.
C.When income increases, the demand increases.
D.Income and the demand are unrelated.

Accepted Answer

The answer of A good is normal if which of...

Question 16

Which of the following best describes demand?
A.A change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve.
B.A change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve.
C.Both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions.
D.Both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions.

Accepted Answer

Demand refers to the willingness and ability of consumers to purchase goods and services at different prices. A change in quantity demanded refers to a movement along the demand curve as a result of a change in the price of the good or service. However, a change in demand refers to a shift in the demand curve caused by a change in factors such as income, tastes, preferences or price of other related goods or services. Hence, option B accurately describes the difference between changes in demand and changes in quantity demanded.

Question 17

If the demand for tires goes down when the price of gas goes up, then tires and gas are:
A.substitutes.
B.complements.
C.both expensive.
D.both inexpensive.

Accepted Answer

Tires and gas are complements because the demand for one decreases when the price of the other increases, indicating that they are used together.

Question 18

If people demand more of product A when the price of B falls, then A and B are:
A.not related.
B.substitutes.
C.complements.
D.inferior goods.

Accepted Answer

When the demand for product A increases as the price of product B falls, it indicates that A and B are complements. This means that they are used together, and a decrease in the price of one leads to an increase in the demand for the other.

Question 19

An inferior good is one for which ________ in buyers' income causes _.
A.an increase; an increase in demand
B.an increase; an increase in quantity demanded
C.an increase; a decrease in demand
D.a decrease; a decrease in demand

Accepted Answer

The answer of An inferior good is one for which...

Question 20

A good is inferior if which of the following is true?
A.When income increases, the demand remains unchanged.
B.When income increases, the demand decreases.
C.When income increases, the demand increases.
D.Income and the demand are unrelated.

Accepted Answer

The answer of A good is inferior if which of...

Quiz 3: Supply and Demand

The demand for meals at a local Applebee's will shift to the left if: A.the Olive Garden offers a 10% discount coupon in the local newspaper. B.the price of a meal at Applebee's rises. C.local incomes increase and Applebee's is a normal good. D.the price of gasoline falls in the local area.

An increase in the demand for gasoline today caused by concerns that gasoline prices will be higher tomorrow is most likely attributable to which of the following? A.income B.consumer expectations C.consumer preferences D.prices of other goods

Which will not increase demand for desktop computers? A.an increase in the incomes of computer B.users cool new computer games C.Dell Computers going out of business D.the price of notebook computers increasing

Pizza is a normal good.If students' incomes at your college increase, the effect on pizza would be: A.an increase in the demand. B.an increase in the quantity demanded. C.a decrease in the demand. D.no change in the demand.

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

The demand curve for videos has shifted to the right.What could have caused it?

If chicken and beef are substitutes, then a fall in the price of chicken will bring about: A.an increase in the demand for beef. B.a decrease in the demand for beef. C.a decrease in the quantity demanded of beef. D.no change in the demand for beef.

An increase in the price of hamburger would probably result in in the demand for hamburger buns. A.a decrease B.an increase C.no change D.random fluctuations

Which of the following describes two goods that are most likely substitutes in consumption?

For most goods, purchases tend to rise with increases in buyers' incomes and to fall with decreases in buyers' incomes.Such goods are known as: A.inferior goods. B.direct goods. C.normal goods. D.indirect goods.

If steak and potatoes are complements, when the price of steak goes up, the demand curve for potatoes: A.shifts to the right. B.shifts to the left. C.stays the same. D.shifts to the right and then moves back.

Which of the following is likely to cause a rightward shift in the demand for home-delivered pizza? A.a lower price of pizza B.a lower price of fast-food hamburgers C.a higher price of pepperoni D.a larger population

An announcement that smoking will harm your ability to think clearly will most likely result in:

A good is normal if which of the following is true? A.When income increases, the demand remains unchanged. B.When income increases, the demand decreases. C.When income increases, the demand increases. D.Income and the demand are unrelated.

If the demand for tires goes down when the price of gas goes up, then tires and gas are: A.substitutes. B.complements. C.both expensive. D.both inexpensive.

If people demand more of product A when the price of B falls, then A and B are: A.not related. B.substitutes. C.complements. D.inferior goods.

An inferior good is one for which ________ in buyers' income causes _. A.an increase; an increase in demand B.an increase; an increase in quantity demanded C.an increase; a decrease in demand D.a decrease; a decrease in demand

A good is inferior if which of the following is true? A.When income increases, the demand remains unchanged. B.When income increases, the demand decreases. C.When income increases, the demand increases. D.Income and the demand are unrelated.