Question : 11) A change in all of the following variables will : 1245032

 

 

11) A change in all of the following variables will change the market demand for a product except

A) the price of the product.

B) population and demographics.

C) income.

D) tastes.

 

Table 3-1

Loose Leaf Tea

Price per lb.

(dollars)

Sunil’s

Quantity Demanded (lbs)

Mia’s

Quantity Demanded (lbs)

Rest of Market

Quantity

Demanded (lbs)

Market

Quantity Demanded (lbs)

$8

  4

0

30

 

  6

  7

2

40

 

  5

  9

3

51

 

  4

12

5

64

 

  3

15

8

90

 

 

12) Refer to Table 3-1. The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia) and the rest of the market. At a price of $5, the quantity demanded in the market would be

A) 51 lbs.

B) 63 lbs.

C) 76 lbs

D) 146 lbs.

 

13) Refer to Table 3-1. The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia) and the rest of the market. If the price of loose-leaf tea rises from $3 to $4, the market quantity demanded would

A) decrease by 32 lbs.

B) increase by 64 lbs.

C) increase by 32 lbs.

D) decrease by 64 lbs.

 

14) The income effect of a price change refers to the impact of a change in

A) income on the price of a good.

B) demand when income changes.

C) the quantity demanded when income changes.

D) the price of a good on a consumer’s purchasing power.

 

15) Which of the following will shift the demand curve for a good?

A) a change in the technology used to produce the good

B) an increase in the price of the good

C) a decrease in the price of a complementary good

D) a decrease in the price of the good

 

16) A movement along the demand curve for toothpaste would be caused by

A) a change in the price of toothbrushes.

B) a change in consumer income.

C) a change in the price of toothpaste.

D) a change in population.

 

17) When the price of a good falls, consumers buy a larger quantity because of the ________ effect and the ________ effect.

A) substitution; income

B) normal; inferior

C) substitute; complement;

D) supply; demand

 

18) If the price of grapefruit rises, the substitution effect due to the price change will cause

A) a decrease in the demand for grapefruit.

B) a decrease in the demand for oranges, a substitute for grapefruit.

C) a decrease in the quantity demanded of grapefruit.

D) a decrease in the quantity supplied of grapefruit.

 

19) If the price of orchids falls, the substitution effect due to the price change will cause

A) an increase in the demand for orchids.

B) an increase in the demand for roses, a substitute for orchids.

C) an increase in the quantity demanded of orchids.

D) an increase in the quantity supplied of orchids.

20) The ________ effect refers to the change in quantity demanded for a good that results from the effect of a change in the good’s price on consumer’s purchasing power.

A) ceteris paribus

B) population

C) substitution

D) income