Question 1

Each of the following is a determinant of demand except

Accepted Answer

Technology is not a determinant of demand, as it does not directly influence consumers' willingness and ability to pay for a product. The other options listed (tastes, expectations, and prices of related goods) are all factors that can affect demand for a product.

Question 2

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

Accepted Answer

When a good is normal, an increase in income will result in an increase in demand for the good. This is because consumers have more purchasing power and are able to buy more of the good at each price level. Therefore, the demand curve for the good shifts to the right.

Question 3

Which of the following is not a determinant of demand?

Accepted Answer

The answer of Which of the following is not a...

Question 4

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

Accepted Answer

When a good is inferior, it means that as income increases, the demand for the good decreases. Therefore, an increase in income will result in a decrease in the demand for the good, as reflected by a leftward shift of the demand curve.

Question 5

Soup is an inferior good if

Accepted Answer

An inferior good is a good for which demand decreases as income increases. In this case, if the demand for soup falls when income rises, it's a sign that soup is an inferior good.

Question 6

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

Accepted Answer

If a decrease in the price of good X results in fewer units of good Y being sold, it implies that X and Y are substitute goods. When the price of a substitute good decreases, consumers tend to buy more of it and less of the other good.

Question 7

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

Accepted Answer

When the demand curve for computers shifts to the right with an increase in income, it indicates that computers are a normal good, meaning that as income rises, consumers are willing to buy more of the good. If computers were an inferior good, the demand curve would shift to the left with an increase in income. The other answer choices (C and D) are not relevant to the scenario given.

Question 8

If Francis experiences a decrease in his income,then we would expect Francis's demand for

Accepted Answer

When there is a decrease in income, people tend to buy fewer normal goods since they become relatively more expensive compared to their budget. Therefore, Francis's demand for normal goods may decrease. On the other hand, luxury goods are likely to be more sensitive to changes in income, and their demand may decrease as well. Inferior goods, which are cheaper alternatives to normal goods, may become more attractive to Francis, and their demand may increase. However, there is no information to suggest that Francis's demand for each good he purchases will remain unchanged.

Question 9

You lose your job and,as a result,you buy fewer romance novels.This shows that you consider romance novels to be a(n)

Accepted Answer

The answer of You lose your job and,as a result,you...

Question 10

Which of the following is not a determinant of the demand for a particular good?

Accepted Answer

The prices of the inputs used to produce the good are not a determinant of the demand for a particular good. Inputs affect the supply of the good rather than demand. The determinants of demand are income, tastes and preferences, prices of related goods (substitutes and complements), expectations, and number of consumers in the market.

Question 11

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

Accepted Answer

An inferior good is a good for which demand decreases as income increases. If a decrease in income increases the demand for a good, then it is considered an inferior good.

Question 12

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

Accepted Answer

An increase in consumer income would shift the demand curve for gasoline to the right as people would have more money to spend on gasoline and other goods. A decrease in the price of gasoline (A) would simply move along the demand curve, not shift it. An increase in the price of cars (C) would shift the demand curve for gasoline to the left as people would be less likely to purchase cars and therefore less likely to purchase gasoline. A decrease in the expected future price of gasoline (D) would not necessarily shift the demand curve as it does not affect current demand.

Question 13

The demand curve for textbooks shifts

Accepted Answer

The demand curve for textbooks will shift when a determinant of demand other than the price of textbooks changes, such as changes in consumer tastes, expectations, the price of related goods, and demographics. Only a change in one of these factors will cause a shift in the demand curve, not just a change in the number of textbook-buyers.

Question 14

If the demand for a good falls when income falls,then the good is called

Accepted Answer

A normal good is one for which demand increases when income increases and falls when income falls.

Question 15

Currently you purchase 6 packages of hot dogs a month.You will graduate from college in December,and you will start a new job in January.You have no plans to purchase hot dogs in January.For you,hot dogs are

Accepted Answer

An inferior good is a good whose demand decreases when consumer income rises. In this case, the fact that the individual is no longer purchasing hot dogs in January suggests that they may have more disposable income to purchase higher-quality or more expensive food items, indicating that hot dogs are an inferior good for them.

Question 16

Suppose that Carolyn receives a pay increase.We would expect

Accepted Answer

When Carolyn receives a pay increase, her purchasing power increases, leading to a decrease in demand for inferior goods, as she can now afford better alternatives.

Question 17

A likely example of substitute goods for most people would be

Accepted Answer

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

Question 18

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 19

Pizza is a normal good if

Accepted Answer

A normal good is one for which the demand rises when income rises. In this case, if people's incomes increase, they are more likely to spend more on pizza, leading to an increase in demand for pizza.

Question 20

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...

Quiz 4: The Market Forces of Supply and Demand