Question

1) If the product is yak fat, and price of yak fat increases, what variable is affected, and is it a move along the D curve (Qd), or a new Demand curve?

Select one or more:

a. price

b. tastes and preferences

2) National health food fad sweeps the country, and the product is yogurt, what variable is affected, and is it a move along the D curve (Qd), or a new Demand curve?

Select one or more:

a. price

b. tastes and preferences

c. price of complimentary good

d. along the curve

e. new curve

c. price of complimentary good

d. along the curve

e. new curve

3) If the product is peanut butter, and the price of jelly increases, what variable is affected, and is it a move along the D curve (Qd), or a new Demand curve?

Select one or more:

a. price

b. tastes and preferences

c. price of complimentary good

d. along the curve

e. new curve

4) If the product is gasoline, and world income increases, what variable is affected, and is it a move along the D curve (Qd), or a new Demand curve?

Select one or more:

a. price

b. tastes and preferences

c. price of complimentary good

d. along the curve

e. new curve

f. income

5) If the product is Kid Rock tickets, and the price of concert tickets to see Kid Rock decreases, what variable is affected, and is it a move along the D curve (Qd), or a new Demand curve?

Select one or more:

a. price

b. tastes and preferences

c. price of complimentary good

d. along the curve

e. new curve

f. income

Answer 1

1) Ans ---

option a --- price

option d---- along demand curve

( Option d is given along question number 2, I have taken from there)

Explanation----

Movement along demand curve( upward) occurs when the readon is change in price of that good.There is only one factor, that is price ,which affects quantity demanded.

Ans--2)

option --- b

taste and preferences

option-- e--- new curve

Explanation-----

It is rightward shift of demand curve which occurs due to change in tastes and preference of consumers due to awareness.,price of product remains the same .It is change in factors other than price

Ans(3)

option --C--- price of complementary good

option -- e-- new curve

Explanation-----

Peanut butter and jelly are complementary goods .Increase in the price of jelly will decrease the demand for peanut butter. So, it will be leftwardward shift of demand curve of peanut butter. ,as the price of peanut butter has not changed.

Ans---4

option f--- Income

option e--- new curve

Explanation-----When income increases ,there is shift of demand curve .As there is no change in price of gasoline, so there is no movement along demand curve.It is the change in factors other than price.

Ans---5)

option a----- price

option d----- along the curve

Explanation-----

When ticket price falls, the demand for tickets will increase.As the factor affecting demand curve is price, it is movement along( downward) demand curve