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21) Which of the following will cause a rightward shift of the demand curve?

A) a decrease in the cost of production

B) a decrease in the price of the good

C) an increase in the expected future price of the good

D) all of the above

 

22) Which one of the following is NOT a determinant of demand?

A) prices of related goods

B) cost of inputs in production

C) income

D) future price expectations

 

23) All of the following will affect the position of the demand curve EXCEPT

A) income.

B) taste and preference.

C) changes in expectations of future relative prices.

D) prices of resources used to produce the product.

24) Assume that coffee and tea are substitutes. Given a downward sloping demand curve for tea, an increase in the price of tea will cause

A) an increase in the demand for coffee.

B) a decrease in the demand for coffee.

C) a leftward shift of the demand curve for tea.

D) a leftward shift in the demand for coffee.

 

25) If goods X and Y are substitute goods, then an increase in the price of Y, other things being equal,

A) results in a decrease in the amounts of both X and Y consumed.

B) decreases the quantity demanded of Y, but has no effect on the amount of X consumed.

C) results in a decrease in the quantity of Y consumed, but increases the demand for X.

D) has no real effect on the quantity demanded of good Y, but increases the demand for X.

 

26) If bagels and croissants are substitute goods, which of the following is likely to occur if the price of bagels has decreased?

A) The demand curve for bagels shifts to the right.

B) A leftward movement along the bagel demand curve.

C) The demand curve for croissants shifts to the right.

D) The demand curve for croissants shifts to the left.

 

27) If two goods are substitutes, then

A) an increase in the price of one causes the demand for the other to fall.

B) there is an inverse relationship between changes in the price of one good and changes in the demand for the other.

C) if the price of one good falls, the demand for the other good falls also.

D) changes in the quantity demanded of one good will not affect the demand for the other.

28) Suppose that goods X and Y are substitutes and the price of good Y falls. We would then expect

A) the quantity of good Y demanded to increase and the demand for good X to increase also.

B) an increase in the demand for good X and a decrease in the quantity of good Y demanded.

C) an increase in the quantity demanded of good Y and a decrease in the demand for good X.

D) an increase in the demand for both good X and good Y.

 

29) After the price of smartphone apps falls, Justin buys fewer flash drives but he buys a new smartphone. For Justin

A) smartphone apps and flash drives are complements, and smartphone apps and smartphones are substitutes.

B) smartphone apps, flash drives, and smartphones are all complements.

C) smartphone apps and flash drives are substitutes, and smartphone apps and smartphones are complements.

D) smartphone apps, flash drives, and smartphones are not all complements.

 

30) An increase in demand for a good can be caused by

A) a decrease in the price of a substitute good.

B) a reduction in income if the good is a normal good.

C) a decrease in the price of a complementary good.

D) an increase in price of a complementary good.

 

 

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