Question : 51.Demand for Snickers bars will decrease if: A. the price of Snickers : 1378995

51.Demand for Snickers bars will decrease if:

A. the price of Snickers bars decreases.

B. a news story claiming 95% of all geniuses eat at least one Snickers bar a day is released.

C. the price of Milky Way bars decreases.

D. the price of Milky Way bars increases.

52.We say that goods are substitutes when they:

A. serve similar-enough purposes that a consumer might purchase one in place of the other.

B. are related goods that are consumed together, so that purchasing one will make a consumer more likely to purchase the other.

C. can replace something consumers typically purchase at a significantly lower price.

D. change a consumer’s preferences.

53.We say that goods are complements when they:

A. serve similar-enough purposes that a consumer might purchase one in place of the other.

B. are related goods that are consumed together, so that purchasing one will make a consumer more likely to purchase the other.

C. can replace something consumers typically purchase at a significantly lower price.

D. change a consumer’s preferences.

54.John just won the Megamillions jackpot. We can assume that:

A. his demand for all normal goods will increase.

B. his demand for all inferior goods will increase.

C. his demand for all normal goods will decrease.

D. his demand for all normal goods will stay the same.

55.Bob just got laid off and now has no income. We can assume that:

A. his demand for all normal goods will increase.

B. his demand for all inferior goods will increase.

C. his demand for all inferior goods will decrease.

D. his demand for all normal goods will stay the same, but will decrease for inferior goods.

56.After getting a raise at work, Jennie now regularly buys steak instead of hamburger. Based on this behavior, we can assume:

A. steak is a normal good, and hamburger is an inferior good for Jennie.

B. steak is an inferior good, and hamburger is a normal good for Jennie.

C. steak and hamburger are complementary goods to Jennie.

D. We cannot make any of these assumptions about Jennie.

57.As part of recent cutbacks, Paul just accepted a 10% cut in pay. Now he brews coffee at home instead of stopping at Starbucks every day. Based on this behavior, we can say:

A. home-brewed coffee is a normal good, and Starbucks coffee is an inferior good for Paul.

B. home-brewed coffee and Starbucks coffee are substitute goods for Paul.

C. home-brewed coffee will become a normal good for Paul over time.

D. We cannot make any of these assumptions about Paul.

58.After getting a raise at work, Jasper now regularly buys steak instead of chicken. Which factor of demand has influenced Jasper’s demand for steak?

A. Price of a substitute good

B. Price of a complementary good

C. Income

D. Preferences

59.Apple just announced it will be coming out with the newest model iPhone in the next six months. One could reasonably expect demand for the current model of iPhone to:

A. decrease due to a change in expectations of future prices.

B. increase due to a change in expectations of future prices.

C. increase due to limited supply of the current model.

D. decrease due to the change in price of a substitute good.

60.The latest news report stated that the housing market is making a comeback and that house prices are on the rise. This information is likely to:

A. increase demand for houses now due to a change in expectations of future prices.

B. decrease demand for houses now due to a change in expectations of future prices.

C. have no effect on the current housing market, but will increase demand in the future.

D. have no effect on the current demand for housing, but will decrease current supply.