question
Which of the following statements about quantity demanded is not true? Quantity demanded is:
answer
the entire relation between price and quantity.
question
To say that the demand curve for movies is downward sloping to the right means that:
answer
less will be demanded at higher prices.
question
Which of the following will NOT, all else equal, cause demand for good A to change?
answer
a change in the price of A.
question
One purpose of advertising is to:
answer
shift the demand curve for the good to the right.
question
Consider automobiles and automobile tires. When the price of automobiles decreases, the demand for tires is predicted to:
answer
increase.
question
As a household's average income rises, we usually expect:
answer
its demand for luxuries to increase.
question
A fall in the price of raw milk, used in the production of ice cream, will:
answer
increase the supply of ice cream, causing the supply curve of ice cream to shift to the right.
question
An increase in the price of cheese, all else equal, is likely to have all of the following effects except a:
answer
all of the above will occur.
question
Which of the following will cause an increase in the supply of U.S. wheat?
answer
A temperance movement in the U.S. gains popular acceptance and demand for beer and barley (an input in beer production) fall. (Assume wheat and barley are substitutes in production.)
question
Legalizing the use of addicting drugs would have all of the following effects except:
answer
the supply of addicting drugs would increase.
B. the demand for addicting drugs would increase.
C. in the long-run, price would fall while quantity exchanged would rise.
D. the quality of addicting drugs being sold in the legalized market would be expected to be better than in the illegal market.
B. the demand for addicting drugs would increase.
C. in the long-run, price would fall while quantity exchanged would rise.
D. the quality of addicting drugs being sold in the legalized market would be expected to be better than in the illegal market.
question
In class, we demonstrated that the quantity demanded for a given product was inversely related to its absolute price, all else equal. This relationship is explained by which of the following statements?
answer
the substitution effect causes consumers to buy more of any good at lower absolute prices, all else equal.
question
Which one of the following would be most likely to cause the demand for firewood to increase?
answer
an increase in the price of fuel oil.
question
A fall in the price of raw milk, used in the production of ice cream, will:
answer
have no effect on the supply of ice cream.
question
Suppose it is observed that initially increases in income cause consumption of hamburger to rise but that as income continues to rise consumption of hamburger begins to decline. This would imply that hamburger:
answer
is a normal good at low income levels but an inferior good at high income levels.
question
Which of the following is a stock concept?
answer
the number of incoming freshmen at Missouri State in fall 1988.
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