41.
Inferior goods are those for which demand increases as
A
income decreases.
B
income increases.
C
the price of a substitute rises.
D
the price of a substitute falls.
Loading practice questions
62 practice sets · Page 3 of 4
Inferior goods are those for which demand increases as
income decreases.
income increases.
the price of a substitute rises.
the price of a substitute falls.
Most goods
have vertical demand curves.
have vertical supply curves.
are normal goods.
are complements to each other.
The demand for a good increases when the price of a substitute ________ and also increases whenthe price of a complement ________.
falls; falls
rises; falls
rises; rises
falls; rises
The quantity supplied of a good is
equal to the difference between the quantity available and the quantity desired by allconsumers and producers.
the same thing as the quantity demanded at each price.
the amount that the producers are planning to sell at a particular price during a given time period.
the amount the firm would sell if it faced no resource constraints.
A reduction in the price of a good
does not shift the goods demand curve leftward but does decrease the quantity demanded.
shifts the goods demand curve leftward but does not decrease the quantity demanded.
shifts the goods demand curve leftward and also decreases the quantity demanded.
neither shifts the goods demand curve leftward nor decreases the quantity demanded.
Wants, as opposed to demands,
depend on the price.
are the goods the consumer plans to acquire.
are the unlimited desires of the consumer
are the goods the consumer has acquired.
Good A and good B are substitutes in production. The demand for good A increases so that theprice of good A rises. The increase in the price of good A shifts the
demand curve for good B rightward.
demand curve for good B leftward.
supply curve of good B rightward.
supply curve of good B leftward.
The demand curve for a normal good shifts leftward if income ________ or the expected future price ________
decreases; falls
increases; rises
increases; falls
decreases; rises
Which of the following pairs of goods are most likely substitutes?
compact discs and compact disc players
lettuce and salad dressing
cola and lemon lime soda
peanut butter and gasoline
The law of demand implies that, other things remaining the same,
as the demand for cheeseburgers increases, the price of a cheeseburger will fall.
as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease.
as income increases, the quantity of cheeseburgers demanded will increase.
as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase.
Because of increasing marginal cost, most supply curves
are horizontal.
have a negative slope.
are vertical.
have a positive slope.
Which of the following causes an increase in the quantity supplied of good X but NOT in the supply of good X?
an increase in the price of X
an increase in the price of good Y, a complement in the production of X
an improvement in the technology for producing X
a reduction in the price of resources used to produce X
Which of the following does NOT shift the supply curve?
an increase in the price of the good
a fall in the price of a substitute in production
a decrease in the wages of labor used in production of the good
a technological advance
The quantity supplied of a good or service is the quantity that a producer
actually sells at a particular price during a given time period.
should sell at a particular price during a given time period.
is willing to sell at a particular price during a given time period.
needs to sell at a particular price during a given time period.
Which of the following will shift the supply curve for good X leftward?
a situation in which quantity demanded exceeds quantity supplied
an increase in the cost of the machinery used to produce X
a decrease in the wages of workers employed to produce X
a technological improvement in the production of X
The law of demand implies that if nothing else changes, there is
a linear relationship between price of a good and the quantity demanded.
a positive relationship between the price of a good and the quantity demanded.
a negative relationship between the price of a good and the quantity demanded.
an exponential relationship between price of a good and the quantity demanded.
Blank tapes and prerecorded tapes are substitutes in production. An increase in the price of a blank tape will cause
a decrease in the supply of prerecorded tapes.
an increase in the quantity supplied of prerecorded tapes but not in the supply.
a decrease in the quantity supplied of prerecorded tapes but not in the supply.
an increase in the supply of prerecorded tapes.
The law of demand states that
a decrease in the price of a good shifts the demand curve leftward.
other things remaining the same, the higher the price of a good, the smaller is the quantity demanded.
other thing remaining the same, the higher the price of a good, the larger is the quantity demanded.
an increase in the price of a good shifts the demand curve leftward.
Which of the following is consistent with the law of demand?
A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded.
An increase in the price of a soda causes a decrease in the quantity of soda demanded.
An increase in the price of a tape causes an increase in the quantity of tapes demanded.
A decrease in the price of juice causes no change in the quantity of juice demanded.
Which of the following would NOT shift the demand curve for turkey?
a change in tastes for turkey
a decrease in the price of ham
an increase in income
a change in the price of a turkey