Quiz 4

Question 1

A normal good is a good in which a positive relationship exists between the incomes of consumers and the demand for the good.

Answer 1

True

Question 2

A shortage exists when the quantity demanded is less than the quantity supplied.

Answer 2

False

Question 3

Quantity supplied is the specific amount that consumers are willing to purchase at a specific price.

Answer 3

False

Question 4

Substitute goods are goods that are consumed together.

Answer 4

False

Question 5

Many New York City street vendors switch to selling pizza out of their “street cart”. Hence, the supply of pizza is likely to ______________.

Answer 5

Increase