Exam 2 - Sheet1 Page 1 Exit Menu Test 2 Your response has...

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Unformatted text preview: Sheet1 Page 1 Exit Menu Test 2 Your response has been submitted successfully. Points Awarded 41 Points Missed 9 Percentage 82% 1.The slope of a demand curve is almost always 1 A.positive, because when people buy more of a good, the cost of producing it will rise. B.positive, because the more money a person has, the more of a particular good will be bought. C.negative, because when people buy more of a good, the cost of producing it will fall. D.negative, because with everything else equal, people will buy more of a good when its price is lower. Right Points Earned:1/1 Correct Answer:D Your Response:D 2.The law of demand specifies that 2 A.quantity demanded changes more rapidly than price. B.price and quantity demanded usually move in the same direction. C.price changes do not usually bring changes in quantity demanded. D.price and quantity demanded usually move in opposite directions. Right Points Earned:1/1 Correct Answer:D Your Response:D 3.The law of demand includes the statement "other things being equal." These other things include all of the following EXCEP 3 A.incomes. B.consumer tastes. C.the price of related goods. D.the price of the good itself. Right Points Earned:1/1 Correct Answer:D Your Response:D 4.A market demand curve is found by 4 A.taking the demand curve of the "representative" consumer. B.adding the prices and the quantities demanded by a consumer. C.adding the quantities demanded for each individual consumer at each price. D.adding the prices each consumer would pay for each quantity. Right Points Earned:1/1 Correct Answer:C Your Response:C 5.A demand curve shows the relationship between price and quantity demanded only so long as all other things are held cons 5 A.True B.False Right Points Earned:1/1 Correct Answer:A Your Response:A 6.The law of demand loosely states that a lower price increases the amount of a commodity that people are willing to buy. 6 Sheet1 Page 2 A.True B.False Right Points Earned:1/1 Correct Answer:A Your Response:A 7.An inferior good is a good whose demand 7 A.rises when its price falls. B.falls when the price of a related good falls. C.falls when the consumer's total satisfaction rises. D.rises when the consumer's income falls. Right Points Earned:1/1 Correct Answer:D Your Response:D 8.Which of the following would decrease the demand for butter (i.e., shift the demand curve to the left)? 8 A.An increase in the price of margarine (a substitute for butter). B.A finding that butter contributes to heart disease. C.A decrease in the price of bread (a complement to butter). D.An increase in the price of butter. Right Points Earned:1/1 Correct Answer:B Your Response:B 9.Which of the following cannot cause an increase in demand? 9 A.A decrease in income B.An increase in the price of a substitute C.A decrease in the price of a complement D.A decrease in the price of the good Wrong Points Earned:0/1 Correct Answer:D Your Response:C 10.Assume that the figure below shows demand for soda. A decrease in the price of apple juice (a substitute for soda) will cha10....
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Exam 2 - Sheet1 Page 1 Exit Menu Test 2 Your response has...

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