1.When the price of a good increases, the quantity demanded ______. When the price of a good decreases, thequantity demanded ______.a.rises; risesb.rises; fallsc.falls; risesd.falls; falls
2.Evaluate the accuracy of the following statement: People search harder for substitutes for oil when the priceof oil is high.
3.Your roommate just bought an iPod for $200. She would have been willing to pay $500 for a machine thatcould store and replay that much music. How much consumer surplus does your roommate enjoy from theiPod?
4.Once you graduate from college, get a good job, and experience a rise in income, you will choose to buyfewer ______ goods, such as______.
5.When the price of Apple computers declines, what probably happens to the demand for Windows-basedcomputers?a.It increases, because Apple computers and Windows-based computers are complements.b.It decreases, because Apple computers and Windows-based computers are substitutes.c.It increases, because Apple computers and Windows-based computers are substitutes.d.It decreases, because Apple computers and Windows-based computers are complements.
