Question

-2 Figure 2- 1 2347X 6. A6 move penrd euong the eurve depieted in Pigure 2-3 the slope of this curve a. decresses. b. increases c. remains unchanged. d. rems ins negative. enone of the above. hep sony corpore ion advertia its televiaion asts, the Corporation s trying to cause When shirt of the demand eurve for its television b. rightvard hirt of the upply eurve for ita television e. ieftward shift of the desand curve for its televiaion d. leftard shift of the supply eurve for ita televialon .. none of the above An incresse in the price of product x resulted in adecreaa in the demand for product Y. This indicates 'that product x and Y are .subatitute goods B. complementary goods. C. inferior goods. D. superier goods . unrelated goods 9. According to the paradox of value, consupers are villing to pay sore for diasonds chan they do for vater because a. of conspicuous consumption. b. of the increase in incone over ths past years, and because diamonds are superior goods vhile vater is an interiorgood that froa vater is greater than chat froa an axtra galloo of vater C. soDe cannot live vithout diamonds d. the sacisfaction derived from dissouds is greater than . the additional sacisfaction derived Erom an extra diamond The narket denand curve for a commodity a. is the average of the individual denand curves. 10. ian ef the individual denand curves

Answer 1

6. As we move upward along the curve (which has positive slope because the line is upward sloping) depicted in figure 2-3, the slope of the curve becomes steeper, means slope increases.

Answer: option B

7. If the company advertises it's TV sets, it means it is trying to increase demand for it's TV sets and therefore trying to cause a rightward shift of demand curve.

Answer: option A

8. If an increase in the price of product X resulted in a decrease in the demand for product Y, it means these two goods are complementary of each other. Increase in price of X, decreases Quantitity demanded of good X and as these two products are complementary of each other, therefore demand for good Y also decreases.

Answer: option B