Exam 2 Flashcards
A demand curve:
A. Shows the relationship between price and quantity supplied.
B. Indicates the quantity demanded at each price in a series of prices.
C. Graphs as an upsloping line
D. Shows the relationship between income and spending.
B. Indicates the quantity demanded at each price in the series prices.
The relationship between quantity supplied and price is________ and the relationship between quantity demanded and price is_________.
A. Direct; Inverse
B. Inverse; Direct
C. Inverse; Inverse
D. Direct; Direct
A. Direct; Inverse
One reason that the quantity demanded of a good increases when it’s price falls is that the:
A. Price decline shift the supply curve to the left babe.
B. Lower price shifts the demand curve to the left.i
C. Lower price shifts the demand curve to the right
D. Lower price increases the real incomes of buyers, enabling them to buy more.
D. Lower price increases the real incomes of buyers, enabling them to buy more
In presenting the idea of the demand curve, economist presume the most important variable in determining the quantity demanded is:
A. The price of the product itself.
B. Consumer income.
C. The prices of related goods.
D. Consumer tastes.
A. The price of the product itself.
Steve went to his favorite hamburger restaurant with $3, expecting to buy a $2 hamburger and a $1 soda. When he arrived he discovered that hamburgers were on sale for $1 each, so Steve bought two hamburgers and a soda. Steve’s response to the decrease in the price of hamburgers is best explained by:
A. The Substitution Effect
B. The Income Effect
C. The Price Effect
D. A rightward shift in the demand curve for hamburgers
B. The Income Effect
A recent study found that an increase in the federal tax on beer (and thus an increase in the price of beer) would reduce the demand for marijuana. We can conclude that:
A. Beer and marijuana our substitute goods.
B. Beer and marijuana are complimentary goods.
C. Beer is an inferior good.
D. Marijuana is an inferior good.
B. Beer and marijuana are complementary goods.
If two goods are complements:
A. There are consumed independently
B. An increase in the price of one will increase the demand for the other.
C. A decrease in the price of one will increase the demand for the other.
D. They aren’t necessarily inferior goods.
C. A decrease in the price of one will increase the demand for the other.
Blu-ray players and Blu-ray disc are:
A. Complementary goods.
B. Substitute goods
C. Independent goods.
D. Inferior goods.
A. Complimentary goods.
Which of the following is most likely to be an inferior good?
A. Fur coats.
B. Ocean cruises
C. Used clothing.
D. Steak.
C. Used clothing.
If Z is an inferior good, an increase in money income will shift the:
A. Supply curve for Z to the left.
B. Supply curve for Z to the right.
C. Demand curve for Z to the left.
D. Demand curve for Z to the right
C. Demand curve for z to the left.
If Z is an inferior good, an increase in money income will shift the:
A. Supply curve for Z to the left.
B. Supply curve for Z to the right.
C. Demand curve for Z to the left.
D. Demand curve for Z to the right.
C. Demand curve for Z to the left.
The demand for most products varies directly with changes in consumer incomes. Such products are known as:
A. Complementary goods.
B. Competitive goods.
C. Inferior goods.
D. Normal goods.
D. Normal goods.
A decrease in the price of digital cameras will:
A. Cause the demand curve for memory cards to become vertical.
B. Shift the demand curve for memory cards to the right.
C. Shift the demand curve for memory cards to the left.
D. Not affect the demand for memory card.
B. Shift the demand curve in regards to the right.
A normal good is one:
A. Whose amount demand will increase as is price decreases.
B. Whose amount demand will increase as is price increases.
C. Who’s demand curve will shift leftward as income rises.
D. For which the consumption varies directly with income.
D. Whose demand curve will shift leftward as income rises.
If products C and D are close substitutes, an increase in the price of C will:
A. Tend to cause the price of D to fall.
B. Shift the demand curve of C to the left and the demand curve for D right.
C. Shift the demand curve of D to the right.
D. Shift the demand curves of both products to the right.
C. Shift the demand curve of D to the right.
