Chapter 3 MC.docx - Which of the following best describes...

This preview shows page 1 - 4 out of 11 pages.

1. Which of the following best describes demand? Your Answer: The amount of a good consumers are willing and able to purchase over a particular time period holding all factors except price constant. CONGRATULATIONS! Demand reflects not only willingness but ability to purchase a good or service over some time period holding all factors except price constant. Read the discussion on page 46 and learn more. 2. Which of the following is NOT addressed in the Law of Demand? Your Answer: The perception of consumers that higher-priced goods are of better quality than lower-priced goods. GOOD CALL! The Law of Demand does not address consumers' perceptions of goods in relation to their quality. 3. Which of the following best describes the difference between a change in quantity demanded and a change in demand? Your Answer: A change in quantity demanded occurs when the price of the good has changed; a change in demand occurs when a non-price determinant of demand for the good has changed. WELL DONE! Price changes are reflected as movements along a demand curve, while non-price determinant changes are reflected as a shift in the curve itself. Read the discussion on page 47 and learn more. 4. Which of the following will NOT shift the demand curve for pizza? Your Answer: All of the above will shift the demand curve for pizza. WAY TO GO! Each answer above will affect consumers' perception of the market. Read the discussion on page 48 and learn more.
Image of page 1

Subscribe to view the full document.

5. Which of the following is NOT a factor which will shift the demand curve for some product? Your Answer: An increase in the price of the good itself. CONGRATULATIONS! An increase in the price of the good will be reflected as movement along the demand curve and will not shift it. Read the discussion on page 48 and learn more. 6. Which of the following would NOT shift Santa Claus' demand for elf labor? Your Answer: An increase in the elf wage rate. WELL DONE! To Santa, the wage rate is the price he must pay to secure their labor; as a consequence, the quantity of elves he will employ will fall, but his demand curve for their labor has not shifted. Read the discussion on page 48 and learn more. 7. Which of the following would NOT shift the supply of Buffalo Burgers? Your Answer: An increase in the price of Buffalo Burgers. GOOD CALL! An increase in the price of Buffalo Burgers will result in an increase in the quantity of Buffalo Burgers produced, but the supply of Buffalo Burgers has not shifted. Read the discussion on page 48 and learn more. 8. Which of the following would tend to increase the supply of Buffalo Burgers? Your Answer: An increase in the number of buffalo ranchers. CONGRATULATIONS! An increase in the number of buffalo ranchers would decrease the price of the raw materials used by Buffalo Burgers. Read the discussion on page 50 and learn more.
Image of page 2
9.
Image of page 3

Subscribe to view the full document.

Image of page 4

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern