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41) In the above figure, the demand curve for Good A shifts from D1 to D2 in Graph A when the price of Good B changes from P1 to P2 in Graph B. We can conclude that

A) Good A and Good B are substitutes.

B) Good A and Good B are complements.

C) Good A is a normal good but Good B is an inferior good.

D) Good A and Good B are unrelated.

42) Suppose Good A is a normal good. Which of the following will increase the demand for Good A?

A) an increase in the price of its substitutes

B) a lower expected future relative price of A

C) an increase in the price of its complements

D) a decrease in income

43) If the price of hot dogs increases, the demand for hot dog buns will

A) increase.

B) decrease.

C) remain constant.

D) shift to the right.

44) If the price of apples goes down, then the demand for pears will

A) increase, assuming apples and pears are substitutes.

B) decrease, assuming apples and pears are substitutes.

C) decrease, assuming apples and pears are complements.

D) remain constant, assuming apples and pears are related goods.

45) There is an increase in the demand for cream when the price of coffee falls. Other things constant, we can conclude that coffee and cream are

A) substitute goods.

B) inferior goods.

C) independent goods.

D) complementary goods.

46) An increase in demand is represented by a

A) shift of the demand curve to the left.

B) shift of the demand curve to the right.

C) movement down the demand curve.

D) movement up the demand curve.

47) Two goods are substitutes when

A) an increase in the price of one reduces the demand for the other.

B) an increase in the price of one raises the demand for the other.

C) the two goods are used together.

D) the two goods have the same price.

48) An increase in the price of corn will lead to

A) an upward (and leftward) movement along the demand curve for corn.

B) a leftward shift in the demand curve for corn.

C) a rightward shift in the supply curve for corn.

D) an increase in the quantity of corn consumed.

49) A significant increase in the price of tennis balls will most likely lead to

A) an increase in the demand for tennis racquets.

B) an inward shift in the demand for tennis balls.

C) a movement along the demand curve for tennis racquets.

D) an inward shift in the demand for tennis racquets.

50) If the price of butter increases, the demand for margarine

A) will be unchanged.

B) will shift outward.

C) will shift inward.

D) will kink into an S-curve.

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Economics 1 Month Ago 2 Views