Question (TCO 2) A demand curve Student Answer: shows the relationship between price and quantity supplied.

(TCO 2) A demand curve

Student Answer: shows the relationship between price and quantity supplied.

indicates the quantity demanded at each price in a series of prices.

graphs as an upsloping line.

shows the relationship between income and spending.

Instructor Explanation: Chapter 3.

Points Received: 1 of 1

Comments:

Question 2. Question :

(TCO 2) In the past few years, the demand for donuts has greatly increased. This increase in demand might best be explained by

Student Answer: an increase in the cost of making donuts.

an increase in the price of coffee.

consumers expecting donut prices to fall.

a change in buyer tastes.

Instructor Explanation: Chapter 3.

Points Received: 1 of 1

Comments:

Question 3. Question :

(TCO 2) College students living off campus frequently consume large amounts of ramen noodles and boxed macaroni and cheese. When they finish school and start their careers, their consumption of both goods frequently declines. This suggests that ramen noodles and boxed macaroni and cheese are

Student Answer: inferior goods.

normal goods.

complementary goods.

substitute goods.

Instructor Explanation: Chapter 3.

Points Received: 1 of 1

Comments:

Question 4. Question :

(TCO 2) Which of the following would mostly likely increase the demand for gasoline?

Student Answer: The expectation by consumers that gasoline prices will be higher in the future

The expectation by consumers that gasoline prices will be lower in the future

A widespread shift in car ownership from SUVs to hybrid sedans

A decrease in the price of public transportation

Instructor Explanation: Chapter 3.

Points Received: 1 of 1

Comments:

Question 5. Question :

(TCO 2) Increasing marginal cost of production explains

Student Answer: the law of demand.

the income effect.

why the supply curve is upsloping.

why the demand curve is downsloping.

Instructor Explanation: Chapter 3.

Points Received: 1 of 1

Comments:

Question 6. Question :

(TCO 2) If the demand for product X is inelastic, a 4% increase in the price of X will

Student Answer: decrease the quantity of X demanded by more than 4%.

decrease the quantity of X demanded by less than 4%.

increase the quantity of X demanded by more than 4%.

increase the quantity of X demanded by less than 4%.

Instructor Explanation: Chapter 4.

Points Received: 1 of 1

Comments:

Question 7. Question :

(TCO 2) Suppose the price of local cable TV service increased from $16.20 to $19.80, and as a result, the number of cable subscribers decreased from 224,000 to 176,000. Use the Midpoint formula to find the answer. Along this portion of the demand curve, price elasticity of demand is

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