Question

7. Which of the following could causo a decrense In consumer demand for product X7 a decrease in consumer Income en Increase in the prioes of goods that are good (c) an Increaso in the prioe that consumors expect w prevail for product X in the future Gircle the letter that corespondds to the best answer .A schedule that shos the various amounts of a prod- price in a series of possible prices during a specililed pe- a decrease in the supply of product X & Ftwo goods are subelitutos for each other, an increase of ane w decrease he demand for the other decroase the quantity demanded of the other are wiling and able to purchase at each In the prioe of ane will necessarly iod of time is called the-demand for the other incrense the quanity demanded of the other produchs, A and B, are complemonis, then an increase in the prioe of A will decregpo the ( quentity demanded 2 The reason for the law of demand can best be xb) an increiase jn the price of A (c) an Ihorease in the prioe of A will have no dignilloant 4 a decrease in the price of A will dearane the ) the rationing fundtion of prices elledt on the prioe of B (d diminishing marginal utility 3. Assume that the price ofvideo game players falls What will most Sely happen tothe and qunly of video games, absuming this market is compoltive? equitbrium price and qauanay10. two products, X and Y, are independent goods, then horease the demand for Y increase the dèmand for X effect on the demand for X (e) an Increase in the price of Y will have no signilicant Price will increas quantity will increase. 4 Gilven the following Individuals demand schedules for(a decrease in the prioe of X will sigrilficanty in product X, and assuming these are the onlythree consumcrease the demand for Y ers of X, which sot of prioes and output levels below will be an the market demand curve for this product? 11. The law of supply states that, other things beling constant, as price Increases quantity supplied decreaso0s 12. If the supply curve moves from S to S2 on the graph below, there has been (a) (85, 2); ($1, 10) Which change wil dearease the demand for a product? (a) a favorable change in consumer tastes b) an increase in the price of a substitute good a decrease in the price of a complementary good a decrease in the number of buyers Quantity 6. The income of a consumer decreases and the con sumer's demand for a particular good Increases. It can (a) an ingrease in supaly be conoluded that the good is b) a decrease in supply (a) an increase In quantity supplied (d a decrease in quantity supplied

Answer 1

Ans1) the correct option is b) demand.

demand shows the amount of goods and services people are willing and able to purchase at various prices during a specific time period

Ans2) The correct option is d) diminishing marginal utility.

Law kf demand states that there is an inverse or negative relationship between the price and the quantity demanded.

Ans3) the correct option is d) price will increase; quantity will increase.

When the price of video game players fall, the demand for video games will increase meaning equilibrium price and quantity increase.