An increase in the price of gasoline will cause a

decline in the quantity demanded for gasoline.

A normal good is defined as a good for which demand increases

as the income of consumers increases.

The law of demand holds

C. for both individuals and for markets.

purchased in declining quantities as income rises.

When demand & supply both increase, equilibrium price will ___ & equilibrium quantity will ___.

Any of these answers are possible

Computers & computer software are complements. A decrease in price of computers is likely to

increase the demand for computer software.

Assuming Coors & Budweiser are substitutes, an increase in price of Coors is likely to cause

an increase in the demand for Budweiser.

Graphically, an increase in demand is represented by

an outward shift of the demand curve.

If beans are inferior goods, a decrease in income will

shift the demand curve for beans to the right.

An increase in supply means

a shift in the supply curve downward and to the right.

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Chapter 5 - Demand, Supply, Equilibrium

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Questions 20

Answers

1
An increase in the price of gasoline will cause a
decline in the demand for gasoline.
decline in the quantity demanded for gasoline.
increase in the quantity demanded for gasoline.
increase in the demand for gasoline.
2
A normal good is defined as a good for which demand increases
as the price of close substitutes decreases.
as the income of consumers increases.
as its own price decreases.
as the total number of consumers increases.
3
The law of demand holds
for markets, but not for individuals.
for neither individuals nor for markets.
C. for both individuals and for markets.
for individuals, but not for markets.
4
As the price of an item goes up, the quantity demanded
remains the same.
rises.
falls.
5
If good A & good B are substitutes & the price of good A decreases, the demand for good B will
become nonexistent.
decrease.
not change.
increase.
6
An inferior good is
generally of low quality.
is damaged or referred to as a "second."
purchased in the underground economy.
purchased in declining quantities as income rises.
7
When demand & supply both increase, equilibrium price will ___ & equilibrium quantity will ___.
increase; increase
remain the same; increase
Any of these answers are possible
decrease; increase
8
Computers & computer software are complements. A decrease in price of computers is likely to
decrease the demand for computer software.
increase the demand for computers.
increase the demand for computer software.
decrease the demand for computers.
9
When the demand for CELL PHONES rises, buyers will purchase more CELL PHONES at
some prices.
all prices.
no prices.
10
An increase in demand is an increase in quantity people are willing and able to purchase at
some prices.
at least one price.
different prices.
11
Assuming Coors & Budweiser are substitutes, an increase in price of Coors is likely to cause
an increase in the demand for Coors.
a decrease in the demand for Coors.
an increase in the demand for Budweiser.
a decrease in the demand for Budweiser.
12
Graphically, an increase in demand is represented by
ownward movement (left to right) along a given demand curve.
an outward shift of the demand curve.
an inward shift of the demand curve.
upward movement (right to left) along a given demand curve.
13
If beans are inferior goods, a decrease in income will
shift the demand curve for beans to the right.
shift the demand curve for beans to the left.
increase the production of beans.
cause beans to sell at a lower price.
14
All of the following could shift the demand curve, except?
A rise in income
A change in the price of substitutes
An increase in population in the age group buying that good
A shift of the supply curve
15
A move from E to F represents
a change in quantity demanded.
an increase in demand.
a decrease in demand.
a change in demand.
16
An increase in supply means
a shift in the supply curve upward and to the left.
a shift in the supply curve downward and to the right.
a shift in the supply curve downward and to the left.
a shift in the supply curve upward and to the right.
17
A move from G to H represents
an increase in quantity demanded.
a decrease in quantity demanded.
a decrease in demand.
an increase in demand.
18
A move from D1 to D2 is a(n): _____.
an increase in quantity demanded
a decrease in quantity demanded
a decrease in demand
an increase in demand
19
As income falls, the demand for normal goods ____ and the demand for inferior goods ____.
rises; rises
falls; falls
rises; falls
falls; rises
20
A move from E to F represents
an increase in demand.
an increase in quantity demanded.
a decrease in quantity demanded.
a decrease in demand.

Chapter 5 - Demand, Supply, Equilibrium Flashcards | StudBud