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In: Economics

Holding everything else constant, an increase in the price of MP3 players will result in Question...

Holding everything else constant, an increase in the price of MP3 players will result in

Question 1 options:

	a decrease in the quantity of MP3 players supplied.
	a decrease in the demand for MP3 players.
	an increase in the supply of MP3 players.
	a decrease in the quantity of MP3 players demanded.

Question 2 (1 point)

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If a demand curve shifts to the right, then

Question 2 options:

	demand has increased.
	quantity demanded has increased.
	demand has decreased.
	quantity demanded has decreased.

Question 3 (1 point)

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The income effect of a price change refers to the impact of a change in

Question 3 options:

	the quantity demanded when income changes.
	income on the price of a good.
	the price of a good on a consumer's purchasing power.
	demand when income changes.

Question 4 (1 point)

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Which of the following will shift the demand curve for a good?

Question 4 options:

	a decrease in the price of the good
	a change in the technology used to produce the good
	a decrease in the price of a complementary good
	an increase in the price of the good

Question 5 (1 point)

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If the price of orchids falls, the substitution effect due to the price change will cause

Question 5 options:

	an increase in the quantity of orchids supplied.
	an increase in the demand for orchids.
	an increase in the demand for roses, a substitute for orchids.
	an increase in the quantity of orchids demanded.

Question 6 (1 point)

If an increase in income leads to a decrease in the demand for mac and cheese, then mac and cheese is

Question 6 options:

	a complement.
	a substitute
	an inferior good.
	a normal good.

Question 7 (1 point)

In January, buyers of gold expect that the price of gold will rise in February. What happens in the gold market in January, holding all else constant?

Question 7 options:

	The quantity demanded increases.
	The demand curve shifts to the left.
	The demand curve shifts to the right.
	The supply curve shifts to the right.

Question 8 (1 point)

Peanut butter and jelly are complements. If the price of peanut butter increases, the demand for jelly will increase.

Question 8 options:

	True
	False

Question 9 (1 point)

A change in all of the following variables will change the market demand for a product except

Question 9 options:

	tastes.
	the price of the product.
	population and demographics.
	income.

Question 10 (1 point)

A(n) ________ is represented by a leftward shift of the demand curve while a(n) ________ is represented by a movement along a given demand curve.

Question 10 options:

	decrease in demand; increase in demand
	decrease in demand; increase in quantity demanded
	increase in demand; decrease in quantity demanded
	decrease in quantity demanded; decrease in demand

Solutions

Expert Solution

Answer : 1) The answer is option D.

Because there exists a negative relationship between price and quantity demanded. This means that if price rise then the quantity demanded decrease and vise versa. As here the price of MP3 player increases other things remain same, hence the quantity demanded of MP3 player decrease. Therefore, option D is correct.

2) The answer is option A.

Because when total market demand increase then the demand curve shift to rightward. But if the demand decrease then the demand curve shift to leftward. Therefore, option A is correct.

3) The answer is option A.

Income effect shows the changes in quantity demanded for goods and services due to the changes in income level. In case of positive income effect the quantity demanded increase. In case of negative income effect the quantity demanded decrease. Therefore, option A is correct.

4) The answer is option C.

When demand increase or decrease then the demand curve shifts. In case of complementary goods the demand for one good increase when the price of another good decrease. As a result, the demand curve shift. Therefore, option C is correct.

5) The answer is option B.

In case of substitution goods if price fall for a good then the demand for that good increase. As here the price for orchids falls, hence the demand for orchids increases as a result of substitution effect. Therefore, option B is correct.

Rahul Sunny answered 1 year ago

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