Question 1

(Figure: Demand for Bananas) Use Figure: Demand for Bananas. If pears are a substitute for bananas, an increase in the price of pears could be represented as a:
 ​
​

Accepted Answer

The answer of (Figure: Demand for Bananas) Use Figure: Demand...

Question 2

(Figure: Demand for Bananas) Use Figure: Demand for Bananas. A decreased preference for bananas could be represented as a:
​

Accepted Answer

A decrease in preference would lead to a decrease in demand, which would cause a shift in the demand curve to the left. Therefore, the best choice is C, which represents a shift from D1 to D3.

Question 3

(Figure: Demand for Bananas) Use Figure: Demand for Bananas. Expectations among consumers that the price of bananas will rise significantly in the near future could be represented as a:
 ​
​

Accepted Answer

The answer of (Figure: Demand for Bananas) Use Figure: Demand...

Question 4

(Table: The Demand for Potato Chips) Use Table: The Demand for Potato Chips. Blair demands 30 bags of potato chips per month when the price of each bag is:

Accepted Answer

The answer of (Table: The Demand for Potato Chips) Use...

Question 5

(Table: The Demand for Potato Chips) Use Table: The Demand for Potato Chips. If Blair, Serena, and Dan are the only three buyers in the market and the price of a bag of potato chips is $0.80, the total market quantity demanded is _____ bags per month.

Accepted Answer

The answer of (Table: The Demand for Potato Chips) Use...

Question 6

(Table: The Demand for Potato Chips) Use Table: The Demand for Potato Chips. If Blair, Serena, and Dan are the only three buyers in the market and the price of a bag of potato chips is $0.60, the total market quantity demanded is _____ bags per month.

Accepted Answer

At a price of $0.60, Blair would demand 40 bags, Serena would demand 45 bags, and Dan would demand 120 bags. Therefore, the total market quantity demanded is 40 + 45 + 120 = 205 bags per month.

Question 7

(Table: The Demand for Potato Chips) Use Table: The Demand for Potato Chips. If Blair, Serena, and Dan are the only three buyers in the market, and the price of a bag of potato chips is $0.50, the total market quantity demanded is _____ bags per month.

Accepted Answer

The answer of (Table: The Demand for Potato Chips) Use...

Question 8

When Coca Cola consumption recently decreased, the Coca Cola Company hired a survey firm to determine what was going on. The firm interviewed consumers, who said that rising Coke prices were discouraging them from purchasing Coke. This implies a:

Accepted Answer

A movement along the demand curve for Coca Cola is implied because the change in quantity demanded is due to a change in the price of Coca Cola itself, not due to changes in external factors that would shift the demand curve.

Question 9

An increase in the price of shampoo will generally result in a decrease in the:

Accepted Answer

An increase in the price of shampoo will lead to consumers reducing their quantity demanded because shampoo becomes relatively more expensive compared to other goods. However, the supply of shampoo is not affected by changes in price, so B and D are incorrect. The increase in price does not affect the overall demand for shampoo, just the quantity demanded at that particular price level, so A is also incorrect.

Question 10

The _____ for season tickets for the New York Rangers is the graphical representation of the number of season tickets people want to buy at any given price.

Accepted Answer

The demand curve represents the relationship between the price and the quantity of a good or service that consumers are willing to buy at that price. In this case, the demand curve specifically shows the number of season tickets that people are willing to buy at different price points. The production possibility curve represents the trade-offs a society faces because of scarcity, the supply curve represents the relationship between the price and the quantity of a good or service that producers are willing to sell at that price, and quantity demanded refers to a specific amount of a good or service that consumers are willing to buy at a specific price.

Question 11

The price of Tide falls and the demand for Purex decreases. We can conclude that:

Accepted Answer

When the price of Tide falls, consumers are more likely to substitute Purex for Tide, resulting in a decrease in demand for Purex. This is an indication that Tide and Purex are substitutes.

Question 12

In the market for fresh coffee, a normal good, which of these will shift the demand curve to the right?

Accepted Answer

When incomes rise, consumers have more disposable income to spend on normal goods like fresh coffee. This will lead to an increase in the demand for fresh coffee, shifting the demand curve to the right.

A) More coffee planted in Columbia may lead to a decrease in the price of coffee, but it would not necessarily increase demand. 
B) A fall in the price of coffee would lead to an increase in quantity demanded along the demand curve, but not a shift in the demand curve itself. 
D) Consumers switching from coffee to tea would actually shift the demand curve for coffee to the left, reducing demand.

Question 13

If yoghurt and smoothies are substitutes in consumption, then a rise in the price of yoghurt will cause the:

Accepted Answer

When there is a rise in the price of yoghurt, consumers will be less likely to purchase it and may instead choose to buy smoothies as an alternative. This will cause the demand for smoothies to increase.

Question 14

An increase in income will be reflected in the market for passionfruit as a(n):

Accepted Answer

An increase in income leads to an increase in demand for normal goods, which means that the demand for passionfruit will increase. Therefore, the correct option is B.

Question 15

If ramen noodles are an inferior good, then an increase in income will lead to a:

Accepted Answer

Ramen noodles being an inferior good means that as income increases, demand for it decreases. Therefore, an increase in income will lead to a leftward shift of the demand curve for ramen noodles.

Question 16

Avery goes to the local supermarket to purchase one package of collard greens. She often pays $2.50 for a package, but she finds they are on sale for $1.50 each. According to the law of demand, shoppers like Avery will:

Accepted Answer

According to the law of demand, as the price decreases, the quantity demanded increases. Since Avery normally pays $2.50 for a package but can currently purchase it for $1.50, she is likely to purchase more collard greens than she normally would.

Question 17

Spaghetti and salad are related. If the price of spaghetti increases and the demand curve for salad shifts leftward, these goods are:

Accepted Answer

Spaghetti and salad are complements, meaning they are often consumed together. If the price of spaghetti increases, people may be less likely to purchase it, leading to a decrease in demand for the complementary good, salad. Therefore, if the demand curve for salad shifts leftward, it indicates a negative relationship with the price of spaghetti, confirming their complementary relationship.

Question 18

Suppose oranges and clementines are substitutes. Holding everything else constant, if the price of oranges decreases, then the demand for _____ will _____.

Accepted Answer

When the price of oranges decreases, consumers are more likely to buy oranges instead of their substitute, clementines, leading to a decrease in the demand for clementines.

Question 19

If ramen noodles are an inferior good for Kim, then, holding all other things constant, as Kim's income increases, her demand for ramen noodles will:

Accepted Answer

Ramen noodles are considered an inferior good, meaning that as Kim's income increases, she will likely switch to purchasing higher-quality or more expensive food items, causing her demand for ramen noodles to decrease.

Question 20

Suppose that the price of rare earth metals is increasing (this is one of the main components of most smartphones). As a consequence, people expect the price of smartphones to rise next year. Therefore, people will MOST likely:

Accepted Answer

When people expect the price of smartphones to rise next year due to the increasing price of rare earth metals, they will most likely observe higher prices for smartphones this year. This is because the manufacturers and retailers will try to maintain their profit margins by passing on the increased cost of rare earth metals to the consumers. Therefore, option B is the best choice.

Quiz 2: Demand: Thinking Like a Buyer

(Figure: Demand for Bananas) Use Figure: Demand for Bananas. If pears are a substitute for bananas, an increase in the price of pears could be represented as a:

(Figure: Demand for Bananas) Use Figure: Demand for Bananas. A decreased preference for bananas could be represented as a:

(Figure: Demand for Bananas) Use Figure: Demand for Bananas. Expectations among consumers that the price of bananas will rise significantly in the near future could be represented as a:

(Table: The Demand for Potato Chips) Use Table: The Demand for Potato Chips. Blair demands 30 bags of potato chips per month when the price of each bag is:

(Table: The Demand for Potato Chips) Use Table: The Demand for Potato Chips. If Blair, Serena, and Dan are the only three buyers in the market and the price of a bag of potato chips is $0.80, the total market quantity demanded is _____ bags per month.

(Table: The Demand for Potato Chips) Use Table: The Demand for Potato Chips. If Blair, Serena, and Dan are the only three buyers in the market and the price of a bag of potato chips is $0.60, the total market quantity demanded is _____ bags per month.

(Table: The Demand for Potato Chips) Use Table: The Demand for Potato Chips. If Blair, Serena, and Dan are the only three buyers in the market, and the price of a bag of potato chips is $0.50, the total market quantity demanded is _____ bags per month.

When Coca Cola consumption recently decreased, the Coca Cola Company hired a survey firm to determine what was going on. The firm interviewed consumers, who said that rising Coke prices were discouraging them from purchasing Coke. This implies a:

An increase in the price of shampoo will generally result in a decrease in the:

The _____ for season tickets for the New York Rangers is the graphical representation of the number of season tickets people want to buy at any given price.

The price of Tide falls and the demand for Purex decreases. We can conclude that:

In the market for fresh coffee, a normal good, which of these will shift the demand curve to the right?

If yoghurt and smoothies are substitutes in consumption, then a rise in the price of yoghurt will cause the:

An increase in income will be reflected in the market for passionfruit as a(n) :

If ramen noodles are an inferior good, then an increase in income will lead to a:

Avery goes to the local supermarket to purchase one package of collard greens. She often pays $2.50 for a package, but she finds they are on sale for $1.50 each. According to the law of demand, shoppers like Avery will:

Spaghetti and salad are related. If the price of spaghetti increases and the demand curve for salad shifts leftward, these goods are:

Suppose oranges and clementines are substitutes. Holding everything else constant, if the price of oranges decreases, then the demand for _ will _.

If ramen noodles are an inferior good for Kim, then, holding all other things constant, as Kim's income increases, her demand for ramen noodles will:

Suppose that the price of rare earth metals is increasing (this is one of the main components of most smartphones) . As a consequence, people expect the price of smartphones to rise next year. Therefore, people will MOST likely:

Quiz 2: Demand: Thinking Like a Buyer

(Figure: Demand for Bananas) Use Figure: Demand for Bananas. If pears are a substitute for bananas, an increase in the price of pears could be represented as a: ​ ​

(Figure: Demand for Bananas) Use Figure: Demand for Bananas. A decreased preference for bananas could be represented as a: ​

(Figure: Demand for Bananas) Use Figure: Demand for Bananas. Expectations among consumers that the price of bananas will rise significantly in the near future could be represented as a: ​ ​

(Table: The Demand for Potato Chips) Use Table: The Demand for Potato Chips. Blair demands 30 bags of potato chips per month when the price of each bag is:

(Table: The Demand for Potato Chips) Use Table: The Demand for Potato Chips. If Blair, Serena, and Dan are the only three buyers in the market and the price of a bag of potato chips is $0.80, the total market quantity demanded is _____ bags per month.

(Table: The Demand for Potato Chips) Use Table: The Demand for Potato Chips. If Blair, Serena, and Dan are the only three buyers in the market and the price of a bag of potato chips is $0.60, the total market quantity demanded is _____ bags per month.

(Table: The Demand for Potato Chips) Use Table: The Demand for Potato Chips. If Blair, Serena, and Dan are the only three buyers in the market, and the price of a bag of potato chips is $0.50, the total market quantity demanded is _____ bags per month.

When Coca Cola consumption recently decreased, the Coca Cola Company hired a survey firm to determine what was going on. The firm interviewed consumers, who said that rising Coke prices were discouraging them from purchasing Coke. This implies a:

An increase in the price of shampoo will generally result in a decrease in the:

The _____ for season tickets for the New York Rangers is the graphical representation of the number of season tickets people want to buy at any given price.

The price of Tide falls and the demand for Purex decreases. We can conclude that:

In the market for fresh coffee, a normal good, which of these will shift the demand curve to the right?

If yoghurt and smoothies are substitutes in consumption, then a rise in the price of yoghurt will cause the:

An increase in income will be reflected in the market for passionfruit as a(n) :

If ramen noodles are an inferior good, then an increase in income will lead to a:

Avery goes to the local supermarket to purchase one package of collard greens. She often pays $2.50 for a package, but she finds they are on sale for $1.50 each. According to the law of demand, shoppers like Avery will:

Spaghetti and salad are related. If the price of spaghetti increases and the demand curve for salad shifts leftward, these goods are:

Suppose oranges and clementines are substitutes. Holding everything else constant, if the price of oranges decreases, then the demand for _____ will _____.

If ramen noodles are an inferior good for Kim, then, holding all other things constant, as Kim's income increases, her demand for ramen noodles will:

Suppose that the price of rare earth metals is increasing (this is one of the main components of most smartphones) . As a consequence, people expect the price of smartphones to rise next year. Therefore, people will MOST likely:

(Figure: Demand for Bananas) Use Figure: Demand for Bananas. If pears are a substitute for bananas, an increase in the price of pears could be represented as a:

(Figure: Demand for Bananas) Use Figure: Demand for Bananas. A decreased preference for bananas could be represented as a:

(Figure: Demand for Bananas) Use Figure: Demand for Bananas. Expectations among consumers that the price of bananas will rise significantly in the near future could be represented as a:

Suppose oranges and clementines are substitutes. Holding everything else constant, if the price of oranges decreases, then the demand for _ will _.