The quantity of a good that consumers demand depends only on the price of the good. Indicate whether the statement is true or false ANSWER False. The quantity of a good demanded depends on many factors including: its own price, consumers’ incomes, and the price of related goods.
Date: September 9th, 2020
Assume Joe is only willing to pay $5 for a Ferrari sports car. A) Joe is not considered part of the demand for Ferraris. B) Joe most likely will not be sold a Ferrari. C) Joe is not considered rational. D) Joe’s willingness to pay is not indicative of how much he values the Ferrari. […]
Date: September 9th, 2020
A downward sloping demand curve indicates that A) individuals all have the same valuation of the same product. B) individuals have different valuations of the same product. C) individuals have no valuations of a particular product. D) certain individuals are uninformed about certain aspects of the product. ANSWER B
Date: September 9th, 2020
Suppose an individual inverse demand curve is given as P = 2 1/2 qi, where qi is the quantity demanded by individual i. There are 50 individual consumers with this identical, individual inverse demand curve. Solve for the market demand curve. What will be an ideal response? ANSWER Solve for the individual, regular […]
Date: September 9th, 2020
Assume the price of a movie is $10. Jenna demands 2 movies per week, Sam demands 3 movies per week, and Jordan demands 8 movies per week. From this information we can conclude that A) the market quantity demanded at a price of $10 is at least 13 movies per week. B) Jordan is obviously […]
Date: September 9th, 2020
As the price of a good increases, the change in the quantity demanded can be shown by A) shifting the demand curve leftward. B) shifting the demand curve rightward. C) moving down along the same demand curve. D) moving up along the same demand curve. ANSWER D
Date: September 9th, 2020
If the price of gasoline were $5, many people would stop buying gasoline while others would continue to do so. This would indicate A) those who are buying gasoline value it at least $5 per gallon. B) those who are not buying gasoline value it more than $5 per gallon. C) only those who are […]
Date: September 9th, 2020
If the price of automobiles were to decrease substantially, the demand curve for public transportation would most likely A) shift right. B) shift left. C) remain unchanged. D) remain unchanged while quantity demanded would change. ANSWER B
Date: September 9th, 2020
If a demand curve shifts left, it implies A) as a group, consumers are willing and able to pay less for the product. B) as a group, consumers are willing and able to pay more for the product. C) government has regulated how many people can purchase the product. D) the profit motive of the […]
Date: September 9th, 2020
An increase in the demand curve for orange juice would be illustrated as a A) leftward shift of the demand curve. B) rightward shift of the demand curve. C) movement up along the demand curve. D) movement down along the demand curve. ANSWER B
Date: September 9th, 2020
