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3a
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1. Graphically, the market demand is:
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Th
e
izo
ho
r
Th
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ica
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ls
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th
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Gr
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an
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su
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u.
.
25% 25% 25% 25%
St
ee
pe
r
1. Steeper than any individual demand
curve that is part of it
2. Greater than the sum of the individual
demand curves
3. The horizontal sum of individual demand
curves
4. The vertical sum of individual demand
curves
2. The income and substitution effects
account for:
cu
rv
e
e.
..
..
Sh
i
fts
i
n
th
en
ts
a
ed
lo
em
ng
a
an
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giv
ng
.
s lo
pi
d
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ov
em
nw
ar
do
w
Th
e
ce
te
ris
pa
r ib
us
as
su
...
25% 25% 25% 25%
th
e
1. the ceteris paribus assumption
2. The downward sloping demand
curve
3. Movements along a given
demand curve
4. Shifts in the demand curve
3. When an economist says that the demand
for a product has increased, this means that:
.
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.. .
de
m
an
d
r ic
e
Th
e
ct
p
Pr
od
u
Th
e
pr
o
du
c
sa
re
th
a.
..
.. .
25% 25% 25% 25%
Co
ns
um
er
1. Consumers are now willing to purchase
more of this product at each possible
price
2. The product has become particularly
scarce for some reason
3. Product price has fallen and as a
consequence consumers are buying a
larger quantity of the product
4. The demand curve has shifted to the left
4. Which of the following will NOT cause the
demand for product K to change?
25% 25%
in
in
A
ch
an
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ge
ch
an
A
re
as
in
c
An
co
. ..
th
.. .
n.
..
ei
th
.. .
in
ge
ch
an
A
1. A change in the price of a close
substitute product J
2. An increase in incomes of buyers of
product K
3. A change in the price of product K
4. A change in consumer tastes for K
25% 25%
5. Which of the following items go
together?
A
qu
an
in
ch
an
ge
in
ge
ch
an
A
tit
y
an
d
pr
ic e
co
m
in
in
ge
d.
..
a
an
d
e
d.
..
tit
y
qu
an
in
ch
an
A
ge
ch
an
s..
.
..
25% 25% 25% 25%
A
1. A change in quantity demanded and a
movement along the demand curve
2. A change in income and a movement
along a demand curve
3. A change in price and a shift of the
demand curve
4. A change in quantity demanded and a
shift of the demand curve
re
n.
..
...
cy
cle
sa
Bi
ar
e
fe
w
an
y.
..
Th
er
e
m
Th
er
e
ar
e
m
ar
e
Th
er
e
1. There are many substitutes for
bicycles
2. There are many complements for
bicycles
3. There are few substitutes for
bicycles
4. Bicycles are normal goods
an
y.
..
6. An economist for a bicycle company predicts that,
other things equal, a rise in consumer incomes will
increase the demand for bicycles. This prediction
assumes that:
25% 25% 25% 25%
7. If the demand for product Y shifts to the right as
the price of product X declines, then:
ar
e
co
.. .
in
fe
r..
.
25% 25%
X
an
d
Y
an
d
is
X
X
is
a
X
an
d
Y
a.
..
su
pe
r io
. ..
25% 25%
Bo
th
1. Both X and Y are inferior goods
2. X is a superior good and Y is an
inferior good
3. X is and inferior good and Y is a
superior good
4. X and Y are complementary goods
8. Which of the following will cause the demand for
product X to shift to the left?
n.
..
ei
re
as
in
c
An
de
cr
ea
se
in
n.
..
in
c
An
A
re
as
ei
gr
o.
..
n
at
io
.. .
25% 25% 25% 25%
Po
pu
l
1. Population growth that causes an
expansion in the number of persons
consuming X
2. An increase in the money income if X is
a normal good
3. A decrease in the price of
complementary product Y
4. An increase in money income if X is an
inferior good
9. If you expect the price of ice cream to
increase next week, your demand for ice cream
today will:
1. Shift to the left
2. Shift to the right
3. Not shift at all
4. Become steeper
.. .
ta
e
co
m
No
t
sh
i
ft
a
th
e
o
ft
t
Sh
i
Be
l..
.
th
e
o
ft
t
Sh
i
25%
st
ee
pe
r
25% 25%
r. .
.
25%
10. If a type of clothing suddenly
becomes fashionable, there will be a:
th
e
l..
.
r. .
.
Sh
i
ft
t
o
th
e
Sh
i
ft
t
o
up
en
t
ov
em
M
ov
em
en
t
do
w
n
th
...
.. .
25% 25% 25% 25%
M
1. Movement down this good’s
demand curve
2. Movement up this good’s demand
curve
3. Shift to the right of the good’s
demand curve
4. Shift to the left of the good’s
demand curve