Question : 21) Demand for one item goes down when the price : 1381336

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

A) substitutes.

B) complements.

C) normal goods.

D) inferior goods.

22) In response to news reports that drinking a glass of red wine each day can reduce an individual’s risk of heart disease, there will most likely be a(n)

A) increase in the demand for red wine.

B) decrease in the supply of red wine.

C) increase in the supply of red wine.

D) increase in the quantity demanded of red wine.

23) ________ curves are derived while holding constant income, tastes, and the prices of other goods.

A) Distribution

B) Production

C) Demand

D) Supply

24) The quantity demanded of Coca Cola has increased. The best explanation for this is that

A) the price of Pepsi has decreased.

B) Coca Cola has instituted a new, successful advertising campaign.

C) the price of Coca Cola has decreased.

D) Coca Cola 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 decreases from 7 to 4. This is caused by

A) a decrease in income if DVDs are a normal good.

B) an increase in the price of popcorn which is a complement to DVDs.

C) an increase in the rental price of DVDs.

D) a decrease in the cable price of pay-per-view movies.

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

A) supply; demand; change in price

B) demand; quantity demanded; change in supply

C) price; quantity demanded; movement along the demand curve

D) quantity; supply; change in demand

27) A change in ________ leads to a change in demand that causes a ________.

A) income or price of other goods; shift in the demand curve

B) income or price of other goods; movement along the demand curve

C) the price of the original product; shift of the demand curve

D) income or price of the original product; movement along the demand curve

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

Figure 3.7

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

A) Point A on demand curve D2.

B) Point C on demand curve D2.

C) demand curve D1.

D) demand curve D3.

29) Refer to Figure 3.7. If pizza and beer are complementary goods, an increase 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 burritos are substitutes, a decrease in the price of burritos 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.