Question

24) An increase in the demand for bananas will NOT be caused by: A) a rise in the price of apples. B) news that bananas help relieve stress in people buyers switching to a more healthy diet. D) a drop in the market price of bananas. 25) 26) If the demand for a good increases when there is high unemployment, we can conclude that the commodity is: 26) A) a good for which the law of demand does not apply B) a normal good. C) an inferior good. D) a luxury good. 27) If the demand for good X increases, when the price of good Y decreases, then:27) A) goods X and Y are normal goods. B) goods X and Y are complement. C) goods X and Y are substitutes. D goods X and Y are inferior goods. 30) The demand for big screen TVs would fall, if big screen TVs are normal goods and: 30) A) the market price of big screen television sets increases. B) the market price of DVDs falls. C) buyer's of big screen TVs incomes fall because of a recession. D) there is a larger output of big screen TVs. 31) Inferior goods are A) substandard. B) goods that do not work. C) goods whose purchase is directly related to consumer income. D) goods whose purchase is inversely related to consumer income 32) If tires and gasoline are compliments, then 32) A) tires and gasoline consumption are unrelated. B) an increase in the price of gasoline will reduce the consumption of tires. C) an increase in the price of gasoline will increase the consumption of tires. D) an increase in the price of tires will increase the consumption of gasoline 33) The expectation of higher future prices actually causes higher prices now because: 33) A) demand will increase now as people try to buy before price rises. B) supply will increase now as firms try to sell before the price rises. C) quantity demanded will increase now. D) quantity supply will decrease now 34) A change in demand represents a while a change in quantity demanded is a A) movement along one demand curve; movement along another demand curve B) shift to a new demand curve; movement along one demand curve C) shift to a new demand curve; shift to a another new demand curve D) movement along one demand curve; shift to a new demand curve 35) Demand would be increased by: 35) A) an increase in the price of a substitute good. B) a decrease in the price of the product. C) an increase in consumer income. D) all of the above

Answer 1

24) option D (a drop in the market price of bananas would only lead to movement along the demand curve)

27) option B is correct (Both goods are complements)

30) option C is correct (demand would fall when income falls)

31) option D is correct (Inferior goods are goods whose purchase is inversely related to consumer income)

32) option B (an increase in the price of gasoline will reduce the consumption of tires)

33) option A (Demand will increase now as people try to buy before price rises)

34) option B (A change in demand represents a shift to a new demand curve; while a change in quantity demanded is a movement along one demand curve)

35) option C (Demand would be increased by an increase in consumer income.)