6115pq2 - Practice Quiz Chapter 2 2-1 Which of the...

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Practice Quiz – Chapter 2 2-1 Which of the following would lead to a DECREASE in the demand for tennis balls? a. An increase in the price of tennis balls b. A decrease in the price of tennis rackets c. An increase in the cost of producing tennis balls d. A decrease in average household income when tennis balls are a normal good e. None of the above 2-2 When Sonoma Vineyards reduces the price of its Cabernet Sauvignon from $15 a bottle to $12 a bottle, the result is an increase in a. the demand for this wine. b. the supply of this wine. c. the quantity of this wine demanded. d. the quantity of this wine supplied. Use the following generalized linear demand relation to answer questions 3 through 6: 680 9 0.006 4 d R Q P M P = - + - where M is income and R P is the price of a related good, R . 2-3 From this relation it is apparent that the good is: a. an inferior good b. a substitute for good R c. a normal good d. a complement for good R e. both c and d 2-4 If M = $15,000 and R P = $20, the demand function is
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6115pq2 - Practice Quiz Chapter 2 2-1 Which of the...

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