Quiz 3 Solutions - Quiz 3 Ch 3 1. 2. 3. 4. 5. 6. 7. 8. When...

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Quiz 3 Ch 3 1. When the price of Nike soccer balls fell, Ronaldo purchased more Nike soccer balls and fewer Adidas soccer balls. Which of the following best explains Ronaldo's decision to buy more Nike soccer balls? a. the substitution effect 2. At the current price there is a shortage of a product. We would expect price to a. increase, quantity demanded to decrease, and quantity supplied to increase 3. An economist for a bicycle company predicts that, other things equal, a rise in consumer incomes will increase the demand for bicycles. This prediction assumes that a. Normal goods 4. Tennis rackets and ballpoint pens are a. Independent goods 5. Suppose an excise tax is imposed on product X. We expect this tax to a. decrease the demand for complementary good Y and increase the demand for substitute product Z 6. The income and substitution effects account for a. Downward sloping demand curve 7. If X is a normal good, a rise in money income will shift the a. Supply curve to the right 8.
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