CH3quiz - 1. A recent study found that an increase in the...

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1. A recent study found that an increase in the Federal tax on beer (and thus an increase in the price of beer) would reduce the demand for marijuana. We can conclude that: A. beer and mari juan a are subs titut e goo ds. B. beer and mari juan a are com ple men tary goo ds.
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C. beer is an infer ior goo d. D. mari juan a is an infer ior goo d. 2. The law of supply:
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A. refle cts the amo unts that prod ucer s will wan t to offe r at each pric e in a serie s of pric es. B. is refle cted in a dow nslo ping sup ply curv e.
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C. sho ws that the relat ions hip bet wee n prod ucer reve nue and qua ntity supp lied is nega tive.
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D. refle cts the inco me and subs tituti on effe cts of a pric e chan ge. 3. Graphically, the market demand curve is: A. stee per than any indi vidu al dem and curv e that is part of it.
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B. grea ter than the sum of the indi vidu al dem and curv es. C. the hori zont al sum of indi vidu al dem and curv es.
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D. the verti cal sum of indi vidu al dem and curv es. 4. A rightward shift in the demand curve for product C might be caused by: A. an incr ease in inco me if C is an infer ior goo d.
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B. a decr ease in inco me if C is a nor mal goo d. C. a decr ease in the pric e of a prod uct that is a clos e subs titut e for C.
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D. a decr ease in the pric e of a prod uct that is com ple men tary to C. 5. Refer to the above diagram. Rent controls are best illustrated by: A. pric e A.
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B. qua ntity E. C. pric e C. D. pric e B. 6. Refer to the above diagram, in which S 1 and D 1 represent the original supply and demand curves and S 2 and D 2 the new curves. In this market the indicated shift in demand may have been caused by:
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A. a decl ine in the num ber of buy ers in the mar ket. B. a decl ine in the pric e of a subs titut e goo d.
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C. an incr ease in inco mes if the prod uct is a nor mal goo d. D. an incr ease in inco mes if the prod uct is an infer ior goo d.
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7. R-3 F03114 Refer to the above diagram, which shows demand and supply conditions in the competitive market for product X. A shift in the demand curve from D 0 to D 1 might be caused by a(n): A. decr ease in inco me if X is an infer ior goo d. B. incr ease in the pric e of com ple men tary goo d Y.
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C. incr ease in mon ey inco mes if X is a nor mal goo d. D. incr ease in the pric e of subs titut e prod uct Y. 8. The demand for most products varies directly with changes in consumer incomes. Such products are known as:
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A. com
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CH3quiz - 1. A recent study found that an increase in the...

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