Using the graph space below, answer the following 3 questions (W1-W3) by drawing a new curve that describes expected results from a change in the
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Question

# (1. Other things equal, when consumer income increases, we know that consumer spending increases as well. We call

this relationship as:

A. Elasticrelationship

B. Inelasticrelationship

C. Positiverelationship

D. Negativerelationship

(2. As in the previous question, other things equal is the same as :

A. CeterisParibus

B. NormalGoods

C. Utility

D. UnitElastic

(3. When economy is in recession, consumer income decreases. Meanwhile, the quantity sales of drugstore type cosmetics increased their sales. What do you call this type of product?

A. IncomeGoods

B. InferiorGoods

C. VeblenGoods

D. PriceGoods

Using the graph space below, answer the following 3 questions (W1-W3) by drawing a new curve that
describes expected results from a change in the economy. Consider the more direct impact, whether on demand g supply. 1. Shift only one curve for each of the three Questions. Make sure to
indicate “D” and “,“S that I can see your trace of thoughts 2. Why do you shift the way you draw? 3. Mention what is expected to happen to price and quantity. (Answer by increase, decrease, same, or
uncertain) W1) We have seen round-toe shoes for the last 5 years. A new design, square-toe shoes, has been
featured in Vogue, People Magazines, and fashion blogs. It looks so refreshed and new. P 2 0 Q 3 Price is Quantity is

W2) When you sell your sweater at \$100, your quantity sales is 20 per week. Not you give a discount and
now the price is \$80, then your quantity sales increases to 50 per week. Calculate the price elasticity of
demand. W3-5) Interpret the result from W2. 1: W6) Continue from W2 and W3-5. Now, you know about your consumers. When you give a 10% discount
for the sweater, how much percentage more quantity sales do you expect to increase? % increase in quantity sales

4. Law of Diminishing Marginal Utility explains:
A. The more you buy, you will be happy
B. The more you buy, you will be unhappy
C. As you consume each additional unit of a product, your total happiness goes down.
5. I see two different types of consumptions with the 4 columns provided (each column is either marginal
or total utility for goods preference toward having different or the same color garments). Which one of
them describes that a consumer's marginal utility with choice preference in
different colors?
A. Type A
B. Type B
Q
TypeA
Type B
Type C
Type D
C. Type C
1
30 utils
30 utils
30 utils
30 utils
D. Type D
2
20 utils
50 utils
28 utils
58 utils
3
10 utils
60 utils
22 utils
80 utils

6. Fashion constantly changes with driven by trends that reflect a period, economy, society and culture. A
new trend information is spilled over to larger number of people over time until a next fashion takes
over an old fashion. Simmel in 1904 introduced a concept that fashion is first adapted by the very top
economic class of the society. Then gradually, it is imitated by lower class over time. What do you call
this type of information spillover in fashion theory? A. Trickle down theory B. Trickle up theory C. Trickle across theory D. Trickle jump-up and down theory 7. Over time, wearing jeans have gained mainstream fashion from workers useful garment. This is best
described as
A. Trickle down theory
B. Trickle up theory
C. Trickle across theory
D. Trickle jump-up and down theory 8. We observe that some fashion products violate the law of demand. This is described as
A. Veblen goods
B. Luxury goods
C. Substitute goods
D. Interpersonal utility goods

9. Department store buyers commit their products for upcoming season 7 to 8 months in advance. By the
time the stores have the orders from wholesalers, the supply curve of those products has a:
A. Positive Slope
B. Negative Slope
C. Vertical Slope
D. Horizontal Slope

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