Question

HP Compa 14 a change in tastes a change in income change in price A change in quantity demanded always results from ь. e. a change in supply d. a change in the price of substitute e. 15 the term "capital" as it is used by economists refers to goods used to produce another goods b. money used to purchase stocks and bonds savings accumulated by households d. money used by capitalists to hire workers cities where state governments are located. 16 Negative marginal utilities means that Total utility is also negative b. Marginal utility increases as additional units are consumed The price of the product increases as additional units are consumed C. Total utility falls e. Total utility remains the same When total utilities is falling, marginal utility is 17 Increasing b. Decreasing Positive d. Negative e. constant a. C. Suppose you drink more tea because the price of coffee has increased. Which of the following best 18 your action? the law of supply a. tea and coffee are complements b. the substitution effect C. the income effect d. The law of demand is illustrated by a demand curve that is 19 Horizontal a. Vertical b. c. Upward sloping d. Downward slopping Suppose there is only two goods, apples and oranges. What happens if the price of each gom rcent? The consumer will substitute apples for oranges. The consumer will substitute oranges for apples. There is no substitution effect because relative prices have remained constant. Demand for both goods increases.

Answer 1

Answer : 14) The answer is option c.

According to the law of demand, if price rise then the quantity demanded decrease and vice versa. This means that if price change then the quantity demanded change. Therefore, option c is correct.

15) The answer is option d.

In economics, capital is the money which is used by capitalist to invest in production. Here the capitalist invests money to hire workers. Therefore, option d is correct.

16) The answer is option d.

When marginal utility is positive then the total utility increase. When marginal utility is negative then the total utility decrease. Therefore, option d is correct.

17) The answer is option d.

When marginal utility is positive then the total utility increase. When marginal utility is negative then the total utility decrease. Therefore, option d is correct.

18) The answer is option c.

In case of substitute effect if the price of one good rise then people purchase more quantities of substitute good. Here the price of coffee has been increased and hence I am consuming more tea. So, here occurs substitution effect. Therefore, option c is correct.

19) The answer is option d.

The downward sloping demand curve shows the inverse relationship between price and quantity demanded. According to the law of demand there exists inverse relationship between price and quantity demanded. Therefore, option d is correct.

20) The given question of 20 is not shows fully in the picture. Hence it is not possible to answer.