Question :
11) Which of the following describes the law of demand? : 1240819
11) Which of the following describes the law of demand? When other things remain the same, as
A) the price of gas falls, the quantity demanded of gas increases.
B) the quantity demanded of bread increases, the price of bread falls.
C) the price of peanut butter increases, the quantity demanded of jelly decreases.
D) your income increases, you’ll buy more hamburgers.
E) more people decide to eat pizza, the demand for pizza increases.
12) Gasoline prices increase by 50 percent and other things remain the same. As a result, there is
A) an increase in the demand for gasoline.
B) a decrease in the demand for gasoline.
C) no change in the quantity of gasoline demanded.
D) a decrease in the quantity of gasoline demanded.
E) More information is needed to determine if the demand for gasoline increases or decreases.
13) The law of demand asserts that all else equal, if the price of a good ________, the quantity demanded of that good ________.
A) falls; decreases
B) falls; increases
C) rises; stays the same
D) stays the same; decreases
E) None of the above is correct.
14) In stores, it is common to find seasonal products marked down when the season ends. What explains this behavior?
A) The law of demand is being used to increase the quantity demanded.
B) The store is trying to increase its customers’ demand for the product.
C) The store manager must be trying to drive away customers by selling low quality products.
D) The store is trying to increase its consumers’ incomes by increasing their purchasing power.
E) The store is trying to sell the goods and realizes that they are substitutes for other goods whose prices have risen.
15) The law of demand implies that, other things remaining the same,
A) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases.
B) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded decreases.
C) as income increases, the quantity of cheeseburgers demanded increases.
D) as the demand for cheeseburgers increases, the price of a cheeseburger falls.
E) as more people demand cheeseburgers, the quantity demanded increases.
16) An increase in the quantity demanded is shown as
A) a movement along the demand curve.
B) a movement toward the demand curve.
C) a rightward shift of the demand curve.
D) a leftward shift of the demand curve.
E) both a movement along the demand curve and a shift of the demand curve.
17) Which of the following results in a movement upward along the demand curve for movies?
A) an increase in the price of movie tickets
B) a decrease in the price of movie tickets
C) an increase in income, assuming that movies are a normal good
D) a decrease in income, assuming that movies are a normal good
E) a decrease in the price of NetFlix, a substitute for movies
18) Which of the following is true regarding demand?
i.Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same.
ii.Demand refers to one quantity at one time.
iii.”Demand” and “quantity demanded” are the same thing.
A) i only
B) ii only
C) both i and ii
D) iii only
E) both ii and iii
19) The price of cotton clothing falls. As a result,
A) the quantity demanded of cotton clothing increases.
B) the demand for cotton clothing increases.
C) the quantity demanded of cotton clothing decreases.
D) the demand for cotton clothing decreases.
E) both the demand for cotton clothing increases and the quantity demand of cotton clothing increases.
20) The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk. As a result,
A) the demand for milk increases.
B) the quantity demanded of milk increases.
C) the price of milk falls to encourage people to drink more milk.
D) the demand for milk is not affected.
E) the demand for milk decreases because the price of milk rises.
