Chapter 17

Question 1

The law of demand holds

Answer 1

For both individuals and markets.

Question 2

When we go from one demand curve to another, there has definitely been

Answer 2

A change in demand

Question 3

Changes in demand are caused by each of the following except

Answer 3

Changes in supply

Question 4

As income falls, the demand for normal goods——– and the demand for inferior goods——-.

Answer 4

Falls and rises

Question 5

A move from e to f represents

Answer 5

A decrease in demand

Question 6

A move from f to g represents

Answer 6

A change in quantity demanded

Question 7

As income rises the demand for inferior goods

Answer 7

Falls

Question 8

When there demand for CD’s rises, buyers will purchase more CD’s at

Answer 8

All prices

Question 9

If good A and good B are substitutes and the price of good A decreases, the demand for good B will

Answer 9

Decreases

Question 10

A drop in the price of oil will result in

Answer 10

An increase in the quantity of oil demanded

Question 11

A normal good is defined as a good for which demand increases

Answer 11

As the income of consumers increases

Question 12

An increase in the price of colors is likely to cause

Answer 12

An increase in the demand for Budweiser

Question 13

Which of the following is not a complement for automobiles?

Answer 13

Price of the car

Question 14

If beans are inferior goods, a decrease in income will

Answer 14

Shift the demand curve for beans to the right

Question 15

If the price of edit Pepsi rises, what happens to the price of the diet Come?

Answer 15

It will rise.

Question 16

Chicken and pork are substitutes. Other things being equal, an increase in he price of chicken

Answer 16

Increase the demand for pork.

Question 17

Computers and computer software are complements. A decrease in the price of computers is likely to

Answer 17

Increase the demand for computer software

Question 18

A move from E to F represents

Answer 18

A decrease in demand

Question 19

A move from F to G represents

Answer 19

A change in quantity demanded.

Question 20

When pop Paul VI issued a degree allowing American Catholic bishops to end year round meatless Friday’s, except during Lent, the effect in terms of supply and demand was to cause

Answer 20

A decrease in demand

Question 21

If coffee is a substitute for Tea, the price of coffee rises, what will happen?

Answer 21

Demand for tea will increase.

Question 22

A move from D1 to D2 is an——–.

Answer 22

An increase in demand

Question 23

All of the following could shift the demand curve except?

Answer 23

A shift of the supply curve

Question 24

A shift in the demand curve for gasoline would occur if

Answer 24

People decided to travel more by car.

Question 25

As the price of an item goes up, the quantity demanded ——-.

Answer 25

Falls