Quiz_3_Answer_Key

Quiz_3_Answer_Key - raise. Then, you can conclude that, for...

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1) Consider the following graph. The initial supply curve for beef is represented by A (the dark blue line). You are told that the price of leather, a complement of beef in production, has decreased. Which of the following is true? a) The supply curve remains the same (A). The quantity supplied decreases (it’s a move along the curve) b) The new supply curve is B. c) The new supply curve is C. d) The new supply curve is D. Answer: b). P.96 of textbook: “the supply of a good decreases if the price of one of its complements in production falls”.
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2) Consider the following graph. Curve A represents Donnie’s initial demand curve for shirts. Curve B represents the new demand curve after Donnie’s boss gave him a
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Unformatted text preview: raise. Then, you can conclude that, for Donnie, shirts are: a) An inferior good; b) A substitute good; c) A normal good; d) A complement; Answer: c) Note that the increase in income made e demand curve shift to the right, which reflects 3) Which of the following best represents a quantity demanded of pies? a) $5 per pie; b) 6 pies; c) 2 pies per week at $5 each; d) 8 pies per month. the demand curve shift to the right, which reflects an increase in demand. The good must then be normal. Answer: c). P.85 Textbook, definition of quantity demanded: the amount of any good, service, or resource that people are willing to buy during a specified period at a specified price....
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Quiz_3_Answer_Key - raise. Then, you can conclude that, for...

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