Use the table for the question(s) below.
1) There are three demanders, A, B, and C. According to the table above, if
price were $200 then market quantity demanded would be
A) 95 units.
B) 30 units.
C) 145 units.
D) 50 units.
E) Cannot be calculated with the information available.
1) _______
Use the figure for the question(s) below.
2) Given Paula's and Jaime's demand, total market demand at $10 is
A) 9 units.
B) 8 units.
C) 7 units.
D) 19 units.
E) 15 units.
2) _______
3) When an economy goes into a recession and workers lose their jobs, the
demand for inferior goods
A) decreases (shift to the left) because incomes rise during times of
unemployment.
B) increases (shift to the right) because incomes fall during times of
unemployment.
C) does not change because the demands for particular items lag
overall economic conditions with an extremely long lag, making
the relationship tenuous at best.
D) increase (shift to the right) because incomes rise during times of
unemployment.
E) does not change because the demands for particular items are not
related to overall economic conditions.
3) _______
4) Suppose coffee and tea are substitute goods. If the price of tea rises,
A) there would be no shift of the demand curve for coffee, but a
movement down and to the right along the demand curve for
coffee.
B) the demand for coffee would shift to the right.
C) the demand for tea would shift to the left.
D) the demand for coffee would shift to the left.
E) the demand for tea would shift to the right.
4) _______
5) Suppose that when large rebates and other price discounts are offered
on new cars, we observe an increase in the demand for auto insurance
policies. This would suggest new cars and auto insurance are
A) inferior goods.
B) substitute goods.
C) complementary goods.
D) normal goods.
E) not related.
5) _______
6) A product is an inferior good if
A) when the product's price falls, the demand curve shifts to the right.
B) when income falls, people decrease their demand for the product.
C) when income falls, people increase their demand for the product.
D) when the product's price falls, people buy more of it.
E) when the product's price falls, people buy less of it.
6) _______
7) Suppose ramen noodles are an inferior good, and gourmet pasta is a
normal good. Then, if consumers' incomes rise, demand for ramen
noodles will ____ and demand for gourmet pasta will ____.
A) increase; decrease
B) be unchanged; be unchanged
C) decrease; increase
D) decrease; decrease
E) increase; increase
7) _______
8) Car companies announce a sale on cars that will begin a month from
now. What of the following is likely to happen to the demand for cars
now?
A) It will decrease.
B) It will increase.
C) It will not change, but future demand will increase.
D) It will not change, but quantity demanded will decrease.
E) It will not change, but quantity demanded will increase.
8) _______