Categories
Economics

Which of the following is consistent with the law of supply?

A. As the price of calculators rises, the supply of calculators increases, ceteris paribus.B. As the price of calculators falls, the supply of calculators increases, ceteris paribus.
C.  As the price of calculators rises, the quantity supplied of calculators increases,ceteris paribus
 .D. As the price of calculators rises, the quantity supplied of calculators decreases, ceterisparibus.
Categories
Economics

Which of the following will NOT cause a shift in the demand curve for compact discs

A. a change in the price of pre-recorded cassette tapes.
B. a change in wealth.
C. a change in income.
D. a change in the price of compact discs.
Categories
Economics

Which of the following will NOT cause a shift in the demand curve for compact discs?

A. a change in the price of pre-recorded cassette tapes.
B. a change in wealth
C. a change in income.
D. a change in the price of compact discs
Categories
Economics

If the demand for coffee decreases as income decreases, coffee is

A. a normal good.
B. a complementary good
.C. an inferior good.
D. a substitute good
Categories
Economics

uppose the demand for good Z goes up when the price of good Y goes down. We can saythat goods Z and Y are

A. perfect substitutes.
B. unrelated goods.
C. complements.
D. substitutes
Categories
Economics

Suppose the demand for good Z goes up when the price of good Y goes down. We can saythat goods Z and Y are

A. perfect substitutes.
B. unrelated goods.
C. complements.
D. substitutes
Categories
Economics

Demand curves in P-Q space are derived while holding constant

A. consumer tastes and the prices of other goods.
B. incomes, tastes, and the price of the good.
C. incomes and tastes.
D. incomes, tastes, and the prices of other goods.
Categories
Economics

The quantity demanded (Qd) of a soft drink brand A has decreased. This could be because

A. A’s consumers have had an increase in income.
B. the price of A has increased.
C. A’s advertising is not as effective as in the past.
D. the price of rival brand B has increased.
Categories
Economics

What effect is working when the price of a good falls and consumers tend to buy it instead ofother goods?

A. the substitution effect.
 B. the ceteris paribus effect.
C. the total price effect.
D. the income effect
Categories
Economics

The ‘law of demand’ implies that

A. as prices fall, quantity dem ended increases.
B. as prices fall, demand increases.
C. as prices rise, quantity demanded increases.
D. as prices rise, demand decreases