econ-120-sample-questions-meltem.pdf - ECON 120 SAMPLE...

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ECON 120 SAMPLE QUESTIONS1)The price of cotton clothing falls. As a result,1)A)the demand for cotton clothing decreases.B)the quantity demanded of cotton clothing increases.C)the demand for cotton clothing increases.D)both the demand for cotton clothing increasesandthe quantity demand of cotton clothingincreases.E)the quantity demanded of cotton clothing decreases.
2)Demand curves slope ________ because as the price increases and other things remain the same,the quantity demanded ________.2)
3)Car insurance and cars are complements. If the price of car insurance increases, the3)
4)Two brands of water, Natural Water and Mountain Water, are close substitutes. If the price ofMountain Water decreases, the fall in price4)
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5)Scooters and bicycles are substitutes. Suppose that the price of a bicycle falls. Which of the figuresabove best illustrates how this fall in price affects the demand curve for scooters?5)A)Figure AB)Figure BC)Figure CD)Figure DE)None of the above answers is correct because the change in the price of a bicycle will affectthe supply curvenotthe demand curve.
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6)The graph illustrates the demand for peanuts. Peanuts are a normal good because the6)

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