Question

When recording a manual which of the following is more correct

Name abe123 ID_ OL Assignment Also copy your answers onto a red Par Score with room for 50 answers, a 1 -Quiz (Circle your answer to these questions on this sheet, and keep it. nd it will be collected at the beginning of class on Monday 2/5. You will be given the answers to the questions at a later date so you can review them). This is a good learning tool, so do it individually and do not copy the answers from someone else. 2 points each. 1. Demand is the relationship between price and: a. the income of individual consumers. b. the amount spent on advertising the good. the quantity consumers are willing and able to buy d. the quality of the good. 2. According to the income effect, if real income (purchasing power) increases, consumers will respond by buying more of the good in question if the good is an "inferior" good. a. True b. False 3. If the price of tofu falls, the quantity of tofu demanded will increase, but the demand curve for tofu will remain unchanged. a. True b. False 4. Which of the following would cause movement downward along the demand curve for a normal good, leading to an increase in quantity demanded? a. A decrease in the price of a substitute good b. Consumer expectations that the good will become more expensive in the near future C. A decline in the price of the good d. An increase in the price of a complementary good 5. Market demand is the sum of the individual supplies of all the sellers in a market. a True b. False 6. If consumers expect the price of gasoline to increase tomorrow, the demand for gasoline today: a. is likely to remain unchanged. b. is likely to increase. c. is likely to be zero. d. is likely to decline substantially.

Answer 1

1. c) the quantity consumers are willing and able to buy.

Demand for a commodity refers to the desire to buy a commodity backed with sufficient purchasing power and the willingness to spend.

2. False.

Inferior goods are those goods whose demand decreases with increase in income and vice-versa. Increase in purchasing power decreases demand of inferior good.

3. True.

When demand of a commodity changes due to change in its own price than it is known as change in quantity demanded and it leads to movement in the demand curve.

4. c) a decline in the price of the good.

Fall in the price of good causes increase in quantity demand and leads to downward movement of demand curve.

5. False.

Market demand is the sum of all individual demand of all the consumers in the market.

6. b) is likely to increase

If consumer expect that price of gasoline will increase tomorrow then they increase their current consumption. This causes increase in demand of gasoline today.

7. d) It will increase the income of farmers.

Price floor is set above the equilibrium price so income of farmers increases.

8. b) The market demand at $ 0.75 is 1740 apples.

Equilibrium means Quantity demanded = Quantity supplied

Quantity supplied = 460 + 580 + 700 = 1740 so quantity demanded will also be same.

9. d) There will be excess supply of this particular brand of laptops in the market.

When price is above equilibrium, quantity supplied is greater than quantity demanded which resulted into excess supply.

10. d) The supply of navel oranges would decrease resulting in higher equilibrium price and lower market equilibrium quantity.

When freeze destroy crop then supply shifts leftwards which increases equilibrium price and decreases equilibrium quantity.