Question Name _______________________________

04 Jun Question Name _______________________________

Question

Name _______________________________

Banner _______________________________

Signature _______________________________

Date _______________________________

Section _______________________________

____ 1. The demand for a product is the amount that

a. sellers are willing to sell at a particular price

b. buyers are willing to purchase at a given price

c. buyers purchase in the market

d. buyers are willing and able to purchase at alternative prices

e. buyers are able to purchase at a specific price

____ 2. A demand curve shows how quantity demanded changes as the price changes. It implies that

a. economists are concerned only with money

b. it is impossible to show how anything but price affects demand

c. only a change in price can shift a demand curve

d. quantity demanded is unrelated to price

e. everything else that affects demand is assumed to be constant

____ 3. If pretzels are a normal good, the income effect of a price change means that

a. as income increases, the demand curve for pretzels shifts rightward

b. as the price of pretzels increases, income increases

c. as income increases, the quantity demanded increases along the demand curve for pretzels

d. as the price of pretzels increases, the real income of individuals who demand pretzels

decreases, so the quantity demanded of pretzels decreases

e. as income increases, the demand curve for pretzels shifts leftward

____ 4. A demand curve usually has a

a. positive slope because price and quantity demanded are inversely related

b. negative slope because as price rises, demand falls

c. positive slope because price and quantity demanded are positively related

d. slope of zero because there is no change along a demand curve when everything else is

held constant

e. negative slope because price and quantity demanded are inversely related

____ 5. The demand curve for spinach shows the quantity demanded of spinach

a. as income increases

b. as income decreases

c. only at the equilibrium price of spinach

d. at each possible price of spinach

e. at each possible price of a substitute good

____ 6. Studies show that the demand curve for peas has shifted. Which of the following explanations would you

reject first?

a. The demand for string beans has changed.

b. The price of peas has changed.

c. The income of consumers has changed.

d. The demand for corn has changed.

e. The price of string beans has changed.

____ 7. The effect of a decrease in the price of personal computers, other things constant, is likely to be best

represented by which of the following?

a. a rightward shift of the demand curve

b. a movement leftward along the demand curve

c. a rightward shift of the supply curve

d. a leftward shift of the demand curve

e. a movement rightward along the demand curve

____ 8. If we say that demand has increased, we mean that there has been

a. a rightward shift of the demand curve

b. an increase in the slope of the demand curve

c. a leftward movement along the demand curve

d. a rightward movement along the demand curve

e. a leftward shift of the demand curve

____ 9. A decrease in demand for a good could mean that

a. the demand curve has shifted to the left

b. consumers are willing to pay a higher price for each quantity of the good

c. the demand curve has undergone a parallel shift to the right

d. consumers are willing to buy larger quantities of the good at each price

e. the demand curve has undergone a nonparallel shift to the right

____ 10. A change in income will

a. affect the quantity demanded of candy through the income effect of a price change

b. affect the demand for candy through the income effect of a price change

c. affect quantity demanded only if candy is a normal good

d. have no effect on the demand for candy, because income is assumed constant along a

demand curve

e. shift the demand curve for candy

____ 11. Which of the following is most likely to be an inferior good?

a. soft drinks

b. a subscription to the Wall Street Journal

c. restaurant meals

d. airline travel

e. used clothing

____ 12. Which of the following is most likely to be a normal good?

a. bus rides

b. tickets to major league baseball games

c. trips to the laundromat

d. used paperback books

e. macaroni-and-cheese dinners

____ 13. The difference between normal and inferior goods is that

a. an increase in price will shift the demand curve for a normal good rightward and the

demand curve for an inferior good leftward

b. normal goods are of better quality than inferior goods

c. an increase in income will shift the demand curve for a normal good rightward and the

demand curve for an inferior good leftward

d. an inferior good is something that will not be demanded until quantities of the normal

good have been exhausted

e. if the price of a normal good increases, individuals who buy it are poorer; for inferior

goods, the opposite is true

____ 14. Which of the following will cause the demand curve for gasoline to shift leftward?

a. a rightward shift of the supply of cars

b. a decrease in the price of bicycles

c. an increase in the price of gasoline

d. a decrease in the price of gasoline

e. a leftward shift of the supply of gasoline

____ 15. Two goods are considered substitutes only if a(n)

a. decrease in the price of one leads to an increase in the demand for the other

b. decrease in the supply of one leads producers to switch to production of the other

c. increase in the price of one leads to an increase in the demand for the other

d. decrease in the demand for one leads to a decrease in the supply of the other

e. increase in the demand for one leads to a decrease in the supply of the other

____ 16. If the price of vanilla ice cream decreases, it is likely that

a. demand for chocolate ice cream will increase

b. demand for vanilla ice cream will increase

c. the quantity demanded of vanilla ice cream will decrease

d. demand for chocolate ice cream will decrease

e. demand for vanilla ice cream will decrease

____ 17. An increase in the price of butter, a substitute good, would be most likely to cause

a. a rightward shift of the demand curve for margarine

b. the quantity of margarine demanded to increase

c. the quantity of margarine demanded to decrease

d. a decrease in the price of margarine

e. a leftward shift of the demand curve for margarine

____ 18. Sugar and honey are viewed as substitutes for each other in many cooking applications. If the price of sugar

rises, we would expect

a. the quantity demanded of honey to decrease

b. the demand for honey to increase

c. the demand for honey to decrease

d. the quantity demanded of honey to increase

e. the price of honey to decrease

____ 19. Which of the following is the best example of complements?

a. hiking boots and athletic shoes

b. CDs and DVDs

c. film and film processing (developing)