question
On a demand curve
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all nonprice determinants are held constant.
question
A change in price of a particular good indicates all of the following except
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a shift in the demand curve.
question
Assuming that hamburgers and mustard are complements, a decrease in the price of hamburgers would increase the demand for mustard.
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True
question
The demand curve
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shows the relationship between the price of a good and the quantity that the consumer is willing and able to purchase in a given period of time, holding all other factors that influence consumer behavior constant.
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The demand curve is downward sloping because
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A and B
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The demand curve is upward sloping because as the price of a good increases, the quantity demanded decreases.
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False
question
If the demand for peanut butter falls when a consumer's income rises, then there is evidence that peanut butter is an inferior good.
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True
question
Which of the following circumstances would indicate that households would be willing to purchase more hamburgers at every price?
answer
A fall in the price of hamburger buns
question
Assume that beef and chicken are substitutes. If the price of beef increases, all other things being equal, demand for chicken will increase.
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True
question
The income effect states that when the price of a good increases, a consumer will buy less of the good because his purchasing power is shrinking in terms of that particular good.
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True
question
A demand schedule shows
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the relationship between the price of a good and the quantity demanded of the good.
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Which of the following items go together?
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Change in quantity demanded and movement along a demand curve
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When the price of a good rises, consumers will stop buying the more expensive goods and switch to substitutes. This behavior is explained by
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substitution effect.
question
Which of the following items go together?
answer
A change in quantity demanded and a movement along the demand curve
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