Question

7 points. hich of the following will nof cause the demand for product K to cha A, a change in B. an increase in consumer incomes C, a change in the price of K the price ofclose-substitute product J a change in consumer tastes 2. The law of demand is illustrated by a demand curve that is: A. Vertical B. Horizontal C. Upward sloping Downward sloping 3. An inferior good is one: A. That doesn't work B. That costs too much C. That won't be purchased at any price D. For which demand increases as income decreases A market for a product is in equilibrium when: A. Product price equals demand 4. B. The supply curve remains fixed C Quantity supplied equals quantity demanded Quantity demanded is greater than quantity supplied

Answer 1

Ans 1 C.) change in price of K.

Question is about change in demand for good K

so factors determining demand for product are:

1.change in price of close substitute.

2.increase in consumer income

3.change in consumer taste and prefrences

******* Change in price changes Quantity demanded not Demand*******

Ans 2 is correct

Ans 3 D By definition of inferior good, Inferior goods are those goods whose demand increases when income decreases.They are opposite of Normal goods. In general we deal with normal goods.

Ans 4 is correct