Each point on the demand curve reflects - Each point on the...

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Each point on the demand curve reflects A) all the wants of a given household. B) the highest price consumers are willing and able to pay for that particular unit of a good. C) the highest price sellers will accept for all units they are producing. D) the lowest-cost technology available to produce a good. Answer: B
A drop in the price of a compact disc shifts the demand curve for pre recorded tapes leftward. From that you know compact discs and pre recorded tapes are
A substitute is a good
People buy more of good 1 when the price of good 2 rises. These goods are
Which of the following pairs of goods are most likely substitutes? A) Compact discs and compact disc players. B) Cola and lemon lime soda. C) Lettuce and salad dressing. D) Peanut butter and gasoline. Answer: B
The demand for a good increases when the price of a substitute ____ and also increases when the price of a complement ____.
A complement is a good
Suppose people buy more of good 1 when the price of good 2 falls. These goods are
As the opportunity cost of a good decreases, people buy A) less of that good and also less of its complements. B) less of that good but more of its complements. C) more of that good but less of its complements. D) more of that good and also more of its complements. Answer: D
People come to expect that the price of a gallon of gasoline will rise next week. As a result,
The demand curve for a normal good shifts left-ward if income ____ or the expected future price ____.

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