201_HW2_(09-10-09) - ECON201: MACROECONOMICS HOMEWORK #2...

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ECON201: MACROECONOMICS HOMEWORK #2 (15 points) Multiple-Choice Questions: Please put your answers on scantron form 882-E 1. The law of demand states that: A) the larger the number of buyers in a market, the lower will be product price. B) price and quantity demanded are directly related. C) consumers will buy more of a product at high prices than at low prices. D) price and quantity demanded are inversely related. 2. One reason that the quantity of a good demanded increases when its price falls is that the: A) price decline shifts the supply curve to the left. B) lower price shifts the demand curve to the left. C) lower price shifts the demand curve to the right. D) lower price increases the real incomes of buyers, enabling them to buy more. 3.Which of the following will not cause the demand for product K to change? A) a change in the price of close-substitute product J B) an increase in consumer incomes C) a change in the price of K D) a change in consumer tastes 4.If products C and D are close substitutes, an increase in the price of C will:
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This note was uploaded on 12/18/2009 for the course ECONOMICS 122112 taught by Professor Kimrahg during the Spring '09 term at George Mason.

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201_HW2_(09-10-09) - ECON201: MACROECONOMICS HOMEWORK #2...

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