Question :
31) Refer to Figure 3.7. A movement from Point A : 1381337
31) Refer to Figure 3.7. A movement from Point A to Point B on demand curve D2 would be caused by a(n)
A) decrease in income, assuming pizza is a normal good.
B) decrease in the price of burritos, assuming that pizza and burritos are substitutes.
C) decrease in the price of pizza.
D) increase in the price of pizza.
32) Refer to Figure 3.7. An increase in demand is represented by the movement
A) from D2 to D1.
B) from D2 to D3.
C) along D2 from Point B to Point A.
D) along D2 from Point B to Point C.
33) Refer to Figure 3.7. A decrease in quantity demanded is represented by movement
A) from D2 to D1.
B) from D2 to D3.
C) along D2 from Point B to Point A.
D) along D2 from Point B to Point C.
Refer to the information provided in Figure 3.8 below to answer the questions that follow.
Figure 3.8
34) Refer to Figure 3.8. Assume that there are only two people in the market for baseball caps: Alex and Ryan. Along the ________ for baseball caps, at a price of $10, quantity demanded would be 11.
A) demand curve for Alex
B) demand curve for Ryan
C) market demand curve
D) none of the above
35) Refer to Figure 3.8. Assume there are only two people in the market for baseball caps: Alex and Ryan. Along the ________, at a price of $8, quantity demanded would be 14.
A) demand curve for Alex
B) demand curve for Ryan
C) market demand curve
D) none of the above
Refer to the information provided in Figure 3.9 below to answer the questions that follow.
Figure 3.9
36) Refer to Figure 3.9. Assume that there are only two people in the market for coconuts: Sasha and Kyle. Along the ________ for coconuts, at a price of $14, quantity demanded would be 7.
A) demand curve for Sasha
B) demand curve for Kyle
C) market demand curve
D) none of the above
37) Refer to Figure 3.9. Assume there are only two people in the market for coconuts: Sasha and Kyle. Along the ________, at a price of $10, quantity demanded would be 10.
A) demand curve for Sasha
B) demand curve for Kyle
C) market demand curve
D) none of the above
Refer to Scenario 3.1 below to answer the questions that follow.
SCENARIO 3.1: Rented DVDs and movies shown in theaters are substitutes. Rented DVDs and plasma TVs are complements. Plasma TVs and movies shown in theaters are normal goods.
38) Refer to Scenario 3.1. Most plasma TVs sold in the United States are imported from Japan. If the United States government reduces the number of plasma TVs that can be imported into the United States, ceteris paribus, what would happen?
A) The price of plasma TVs and the rental price of DVDs would increase.
B) The price of plasma TVs and the rental price of DVDs would decrease.
C) The price of plasma TVs would decrease, and the rental price of DVDs would increase.
D) The price of plasma TVs would increase, and the rental price of DVDs would decrease.
39) Refer to Scenario 3.1. In response to complaints from movie theater owners, the government removes an entertainment tax on movie tickets, but there are no additional taxes levied on rented DVDs. This would lead to
A) a decrease in the price of movie tickets, but no change in the rental price of DVDs.
B) a decrease in the price of a movie ticket and an increase in the rental price of DVDs.
C) a decrease in the price of movie tickets and the rental price of DVDs.
D) no change in the price of a movie ticket and a decrease in the rental price of DVDs.
40) Refer to Scenario 3.1. You observe that the rental price for DVDs is higher in the summer than in the winter. This would be explained by the fact that
A) the quantity demanded of rented DVDs is higher in the summer than in the winter.
B) there are more DVDs released into the rental market in the summer than in the winter.
C) demand for rented DVDs is higher in the summer than in the winter.
D) the supply of rented DVDs is higher in the summer than in the winter.
