Question : 21) Demand for one item goes down when the price : 1381045

21) Demand for one item goes down when the price of another item goes up. These items must be

A) substitutes.

B) complements.

C) normal goods.

D) inferior goods.

22) In response to news reports that taking aspirin daily can reduce an individual’s risk of a heart attack, there will most likely be a(n)

A) increase in the supply of aspirin.

B) decrease in the supply of aspirin.

C) increase in the demand for aspirin.

D) increase in the quantity demanded of aspirin.

23) Demand curves are derived while holding constant

A) income, tastes, and the price of the good.

B) only income and tastes.

C) income, tastes, and the prices of other goods.

D) only tastes and the price of other goods.

24) The quantity demanded of Pepsi has decreased. The best explanation for this is that

A) the price of Coca-Cola has increased.

B) Pepsi’s advertising is not as effective as in the past.

C) the price of Pepsi has increased.

D) Pepsi consumers had an increase in income.

Refer to the information provided in Figure 3.6 below to answer the questions that follow.

Figure 3.6

25) Refer to Figure 3.6. The number of DVDs Isabel rents per week increases from 4 to 7. This is caused by

A) an increase in income if DVDs are a normal good.

B) a decrease in the price of popcorn, which is a complement to DVDs.

C) a decrease in the rental price of DVDs.

D) either A or B.

26) A change in the price of a good or service leads to a ________ that leads to a ________.

A) change in demand; movement along the demand curve

B) change in quantity demanded; movement along the demand curve

C) change in demand; shift in the demand curve

D) change in quantity demanded; shift of the demand curve

27) A change in income, preferences, or prices of other goods or services leads to a ________ that causes a ________.

A) change in demand; movement along the demand curve

B) change in quantity demanded; movement along the demand curve

C) change in demand; shift of the demand curve

D) change in quantity demanded; shift of the demand curve

Refer to the information provided in Figure 3.7 below to answer the following questions.

Figure 3.7

28) Refer to Figure 3.7. Assume the market is initially at Point B and that pizza is a normal good. A decrease in income would cause the market to move from Point B on demand curve D2 to

A) demand curve D1.

B) demand curve D3.

C) Point A on demand curve D2.

D) Point C on demand curve D2.

29) Refer to Figure 3.7. If pizza and beer are complementary goods, a decrease in the price of beer will cause a movement from Point B on demand curve D2 to

A) demand curve D1.

B) demand curve D3.

C) Point A on demand curve D2.

D) Point C on demand curve D2.

30) Refer to Figure 3.7. If pizza and hamburgers are substitutes, an increase in the price of hamburgers will cause a movement from Point B on demand curve D2 to

A) demand curve D1.

B) demand curve D3.

C) Point A on demand curve D2.

D) Point C on demand curve D2.