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121) Which of the following are complementary goods?

A) sport utility vehicles and gasoline

B) butter and margarine

C) beer and wine

D) DVDs and videocassettes

 

122) Which of the following are substitute goods?

A) margarine and butter

B) peanut butter and jelly

C) pizza and beer

D) sports utility vehicles and gasoline

 

 

123) Refer to the above figure. Suppose that Cheerios and Apple Jacks are substitutes. Which diagram shows the effect on the demand for Cheerios when the price of Apple Jacks cereal has increased?

A) A

B) B

C) neither graph

D) both graphs

 

124) Refer to the above figure. Suppose that Cheerios and Apple Jacks are substitutes. Which diagram shows the effect on the demand for Cheerios when the price of Apple Jacks cereal has decreased?

A) A

B) B

C) neither graph

D) both graphs

 

125) Refer to the above figure for the market of Cheerios. Which diagram depicts the effect of an increase in the price of Cheerios?

A) A

B) B

C) neither graph

D) both graphs

126) If the price of margarine falls, the demand for butter will

A) remain unchanged.

B) increase.

C) decrease.

D) rise at first and then fall.

 

127) If the price of gasoline rises sharply and the demand for sports utility vehicles falls, then the two goods are

A) complements.

B) normal goods.

C) substitutes.

D) inferior goods.

 

128) If the price of airline travel in Europe falls and the demand for train travel in Europe also falls, then the two goods are

A) complements.

B) normal goods.

C) substitutes.

D) inferior goods.

 

129) Here's what we know about last year's weekly demand for 2-night DVD rentals in the Village of Harmony: When P = $3, Qd = 100; at P = $5, Qd = 75; and when P = $7, Qd = 50. This year the village population has increased by 25%. What impact is this most likely to have?

A) Each individual's demand for DVD rentals will increase.

B) Each individual's demand curve for DVD rentals will shift to the left.

C) The market demand curve for DVD rentals shifts left.

D) The market demand for DVD rentals increases.

130) Which of the following is NOT a determinant of demand?

A) consumers' incomes

B) prices of other goods

C) consumers' tastes

D) production technology

 

 

 

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