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31) We observe that people buy less steak and more potatoes when the price of steak relative to potatoes increases. This indicates that steak and potatoes are

A) substitutes.

B) complements.

C) inferior goods.

D) unrelated goods.

32) Suppose a concert by Lady Gaga and a basketball game played by the L.A. Lakers are substitutes, then which of the following is TRUE?

A) If the price of a ticket to a Lakers game increases, then the demand for Lady Gaga tickets will fall.

B) If the price of a ticket to a Lakers game decreases, the quantity of Lakers tickets demanded will increase.

C) If the price of a ticket to a Lakers game increases, then the demand for Lady Gaga tickets will remain unchanged.

D) The price of a ticket to a Lakers game will always equal the price of a ticket to a Lady Gaga concert.

 

33) If two goods, J and K, are complements, then which of the following statements is FALSE?

A) They are consumed together.

B) An increase in the price of J causes the demand for K to rise.

C) When the quantity demanded of J increases, the demand for K increases.

D) A decrease in the price of K causes an increase in the demand for J.

 

34) Of the following, which is the least likely to be an example of substitute goods?

A) beer and pretzels

B) margarine and butter

C) beef and chicken

D) tea and coffee

 

35) Which of the following pairs of goods is LEAST likely to be a pair of complements?

A) gasoline and vehicles

B) coffee and sugar

C) beer and wine

D) razors and razor blades

36) Suppose we observe that the demand for eggs increases when people buy more potatoes. We can conclude that eggs and potatoes are

A) inferior goods.

B) normal goods.

C) complements.

D) substitutes.

 

37) When the price of tablet devices decreased in the 2010s, there was an increase in the demand for computing apps because tablet devices and computing apps are

A) substitute goods.

B) capital goods.

C) inferior goods.

D) complementary goods.

 

38) If the price of personal computers were to rise, then the demand for printers would decrease because personal computers and printers are

A) complementary goods.

B) consumer goods.

C) inferior goods.

D) substitute goods.

 

39) In the above figure, when the price of Good B increases, the result can be shown by

A) the movement from D1 to D2 in Graph A.

B) the movement from D2 to D1 in Graph A.

C) the movement along D0 from P1 to P2.

D) the movement along D0 from P2 to P1.

 

40) In the above figure, an increase in income is best demonstrated by a

A) shift of D1 to D2 in Graph A, if good A is a normal good.

B) shift of D2 to D1 in Graph A, if good A is a normal good.

C) movement along D0 from P1 to P2 in Graph B.

D) movement along D0 from P2 to P1 in Graph B.

 

 

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