Homework 1 Intermediate Micro Summer 11 TW OQ

# Homework 1 Intermediate Micro Summer 11 TW OQ - Sam Houston...

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Sam Houston State University Dr.Fidel Gonzalez INTERMEDIATE MICROECONOMICS Homework 1 Summer 11 DUE 06/06/11 INPUT ALL YOUR ANSWERS USING THE ONLINE VERSION ON BLACKBOARD. (NO SCANTRONS) Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. If a good is normal, then an increase in income will result in a. an increase in the demand for the good. b. a movement down and to the right along the demand curve for the good. c. a movement up and to the left along the demand curve for the good. d. a decrease in the demand for the good. ____ 2. Which of the following demonstrates the law of demand? a. Kendra buys fewer Snickers at \$0.60 per Snickers since the price of Milky Ways fell to \$0.50 per Milky Way. b. Melissa buys fewer muffins at \$0.75 per muffin than at \$1 per muffin, other things equal. c. Dave buys more donuts at \$0.25 per donut than at \$0.50 per donut, other things equal. d. After Jon got a raise at work, he bought more pretzels at \$1.50 per pretzel than he did before his raise. ____ 3. The demand curve for a good is a. a line that relates income and quantity demanded. b. a line that relates price and income. c. a line that relates quantity demanded and quantity supplied. d. a line that relates price and quantity demanded. ____ 4. The following table contains a demand schedule for a good. Price Quantity Demanded \$10 100 \$20 ? If the law of demand applies to this good, then “?” could be a. 100. b. 400. c. 200. d. 0.

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____ 5. Suppose you make jewelry. If the price of gold falls, then we would expect you to a. be willing and able to produce more jewelry than before at each possible price. b. face a weaker demand for your jewelry. c. face a greater demand for your jewelry. d. be willing and able to produce less jewelry than before at each possible price. ____ 6. A downward-sloping demand curve illustrates a. the relationship between income and quantity demanded. b. that demand decreases over time. c. the law of demand. d. that prices fall over time. ____ 7. A higher price for bagels (a substitute to muffins) would result in a(n) a. decrease in the demand for bagels.
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Homework 1 Intermediate Micro Summer 11 TW OQ - Sam Houston...

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