Practice test 3 - Sheet1 Page 1 The price of chicken has...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Sheet1 Page 1 The price of chicken has increased from $1.50 to $2.00 per pound because a poultry disease caused a decrease in the suppl Correct Answer: The demand for fish will increase. A leftward shift of the entire demand curve could be the result of Correct Answer: all of the above. If beans are inferior goods, a decrease in income will Correct Answer: shift the demand curve for beans to the right. In regard to supply, economics teaches us that Correct Answer: in order to get producers to provide more of a good, it is necessary to offer them a higher price. A rightward shift of an entire supply curve Correct Answer: all of the above. Demand for ice cream falls because of cold weather, but the supply increases because new firms have entered the market. W Correct Answer: Price will fall A rightward shift of an entire supply curve Correct Answer: all of the above. Changes in the quantity demanded caused by changes in price are Correct Answer: movements along an existing demand curve. In a market, Correct Answer: price and quantity are determined together. If beans are inferior goods, a decrease in income will Correct Answer: shift the demand curve for beans to the right. Assume that the demand curve for romance novels has a negative slope. If the price of these novels increases from $4.25 to Correct Answer: the quantity demanded will decrease. Changes in the quantity demanded caused by changes in price are Correct Answer: movements along an existing demand curve. Which of the following goods is most likely to be an inferior good, regardless of the income of an individual? Correct Answer: Potatoes. An analysis of themarket for Good X shows that the price of a complement, Good Y, is declining. At the same time, there is a Correct Answer: Equilibrium quantity will rise, and the change in equilibrium price cannot be predicted. It may rise, fall, or sta Substitute goods are goods that are Correct Answer: used in place of one another. When price changes, one should expect a change in Correct Answer: quantity supplied. The law of demand states that Correct Answer: a smaller quantity will be demanded at higher prices than at lower prices and there is a negative relationshi If an individual's income increases, then the demand for a normal good will Sheet1 Page 2 Correct Answer: increase. Which of the following affects demand for a good? Correct Answer: Income. When price changes, one should expect a change in Correct Answer: quantity supplied....
View Full Document

This note was uploaded on 09/12/2011 for the course ECONOMICS 1110 taught by Professor Pavur during the Spring '10 term at University of Texas at Austin.

Page1 / 12

Practice test 3 - Sheet1 Page 1 The price of chicken has...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online