21.
The law of demand implies that demand curves
A
slope up.
B
shift leftward whenever the price rises.
C
shift rightward whenever the price rises.
D
slope down.
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The law of demand implies that demand curves
slope up.
shift leftward whenever the price rises.
shift rightward whenever the price rises.
slope down.
If the price of a good changes but everything else influencing suppliers planned sales remainsconstant, there is a
movement along the supply curve.
rotation of the initial supply curve around the initial price.
new supply curve that is to the right of the initial supply curve.
new supply curve that is to the left of the initial supply curve.
A decrease in the quantity supplied is represented by a
movement up the supply curve.
rightward shift in the supply curve.
movement down the supply curve.
leftward shift in the supply curve.
The opportunity cost of good A in terms of good B is equal to the
price of good B minus the price of good A.
ratio of the price of good B to the price of good A.
ratio of the price of good A to the price of good B.
price of good A minus the price of good B.
Which of the following is NOT held constant while moving along a supply curve?
the price of the good itself
prices of resources used in production
expected future prices
the number of sellers
Which of the following influences peoples buying plans and varies moving along a demand curve?
the prices of related goods
preferences
the price of the good
income
A substitute is a good
of lower quality than another good.
of higher quality than another good.
that is not used in place of another good.
that can be used in place of another good.
By definition, an inferior good is a
good for which demand decreases when income increases.
normal substitute good.
good for which demand decreases when its price rises.
want that is not expressed by demand.
People buy more of good 1 when the price of good 2 rises. These goods are
inferior goods.
normal goods.
complements.
substitutes.
A drop in the price of a compact disc shifts the demand curve for prerecorded tapes leftward. From that you know compact discs and prerecorded tapes are
complements.
normal goods.
substitutes.
inferior goods.
People come to expect that the price of a gallon of gasoline will rise next week. As a result,
todays demand for gasoline increases.
next weeks supply of gasoline decreases.
the price of a gallon of gasoline falls today.
todays supply of gasoline increases.
A decrease in quantity demanded caused by an increase in price is represented by a
rightward shift of the demand curve.
movement up and to the left along the demand curve.
movement down and to the right along the demand curve.
leftward shift of the demand curve.
When we say demand increases, we mean that there is a
movement to the right along a demand curve.
movement to the left along a demand curve.
leftward shift of the demand curve.
rightward shift of the demand curve.
As the opportunity cost of a good decreases, people buy
more of that good but less of its complements.
less of that good and also less of its complements.
less of that good but more of its complements.
more of that good and also more of its complements.
A supply curve differs from a supply schedule because a supply curve
is a graph and the supply schedule is a table.
holds the number of suppliers constant, whereas the supply schedule allows the number tovary.
holds resource prices constant, whereas the supply schedule allows them to vary.
represents one firm, whereas the supply schedule represents all firms in the market.
The law of demand states that the quantity of a good demanded varies
inversely with its price.
directly with population.
directly with income.
inversely with the price of substitute goods.
An inferior good is a good for which demand
increases when population increases.
decreases when income increases.
decreases when population increases.
increases when income increases.
A normal good is a good for which demand
increases when income increases.
decreases when population increases.
increases when population increases.
decreases when income increases.
An increase in the number of fast-food restaurants
increases the demand for substitutes for fast-food meals.
raises the price of fast-food meals.
increases the supply of fast-food meals.
increases the demand for fast-food meals.
Good A and good B are substitutes in production. The demand for good A decreases, which lowersthe price of good A. The decrease in the price of good A
increases the demand for good B.
decreases the demand for good B.
increases the supply of good B.
decreases the supply of good B.