567 569 571 The market for corn in Kansas is considered to be competitive This means there are buyers and sellers of corn in Kansas many few Incorrect few many Incorrect many many True Answer Correct few few Incorrect 568 The law of demand states that other things equal as the price increases the quantity demanded will increase Incorrect as the price decreases the demand curve will shift to the right Incorrect as the price increases the demand will decrease Incorrect as the price increases the quantity demanded will decrease True Answer Correct A negative relationship between the quantity demanded and price is called the law of demand True Answer Correct increasing returns Incorrect market clearing Incorrect supply Incorrect 570 Which of the following examples illustrates the law of demand An increase in tuition encourages more students to enroll in college because the quality of education has risen Incorrect Consumers buy more personal computers because prices have fallen True Answer Correct Oil companies drill for new sources of oil because oil prices are higher Incorrect Fewer people play golf because incomes are lower Incorrect illustrates an inverse relationship between price and quantity A demand curve True Answer Correct A supply curve Incorrect A production possibility frontier Incorrect 572 573 574 575 576 Equilibrium Incorrect A negative relationship between the quantity demanded and price is called the law of demand True Answer Correct marginality Incorrect efficiency Incorrect supply Incorrect The law of demand is illustrated by a demand curve that is horizontal Incorrect downward sloping True Answer Correct vertical Incorrect upward sloping Incorrect The law of demand implies that consumers are not responsive to price changes Incorrect consumers will buy more at lower prices True Answer Correct sellers will offer more on the market at higher prices Incorrect sellers will offer less on the market at lower prices Incorrect The apples will decrease when apple prices rise demand for Incorrect quantity demanded of True Answer Correct supply of Incorrect equilibrium of Incorrect A decrease in the price of a good will result in an increase in demand Incorrect an increase in supply Incorrect an increase in the quantity demanded True Answer Correct more being supplied Incorrect 577 Which of the following factors would cause a movement along the demand curve for a particular good a change in the prices of related goods Incorrect a change in the price of that good True Answer Correct a change in the size of the population Incorrect both a change in the price of that good and a change in the size of the population Incorrect 578 A decrease in the price of eggs will result in an increase in the demand for eggs Incorrect an increase in the supply of eggs Incorrect an increase in the quantity of eggs supplied Incorrect an increase in the quantity of eggs demanded True Answer Correct 579 Which of the following best describes the law of demand As income taxes rise fewer new cars are purchased Incorrect As the price of corn rises more acres of corn are planted Incorrect As the price of a DVD rental rises fewer DVDs are rented True Answer Correct As the population rises more electricity is consumed Incorrect 580 Which of the following statements is correct A change in demand is a movement along the demand curve and a change in quantity demanded is a shift of the demand curve Incorrect Both a change in quantity demanded and a change in demand are movements along the demand curve only in different directions Incorrect Both a change in quantity demanded and a change in demand are shifts of the demand curve only in different directions Incorrect A change in quantity demanded is a movement along the demand curve and a change in demand is a shift of the demand curve True Answer Correct 581 582 583 584 In much of the country homeowners choose to heat their houses with either natural gas or home heating oil Which of the following would cause a change in the demand for natural gas a change in the price of home heating oil Incorrect a change in income Incorrect an increase in consumer tastes for natural gas as an energy source Incorrect all of the above True Answer Correct Raclette is a popular wintertime dish in Switzerland It is essentially melted Raclette cheese over boiled new potatoes If the price of Raclette cheese decreased we would expect to see an increase in demand for Raclette cheese Incorrect an increase in demand for new potatoes True Answer Correct no effect on the demand for either of the Raclette ingredients since this is a traditional dish and its consumption does not depend on the prices of the ingredients Incorrect an increase in demand for Raclette cheese and for new potatoes Incorrect When the economy suffers a downturn and the incomes of many people decrease vacationers are more likely to take car trips than to fly Which of the following provides one possible explanation for this phenomenon Air travel and vacation travel by car are complementary goods Incorrect Air travel and vacation travel by car are both normal goods Incorrect Air travel is a normal good and vacation travel by car is an inferior good True Answer Correct Air travel is an inferior good and vacation travel by car is a normal good Incorrect A shift of the demand curve for thin crust pizza would not be caused by a change in buyers incomes Incorrect the price of thin crust pizza True Answer Correct the price of thick crust pizza Incorrect the popularity of thin crust pizza Incorrect 585 586 587 588 If goods A and B are substitutes a decrease in the price of good B will increase the demand for good A Incorrect increase the demand for good B Incorrect decrease the demand for good A True Answer Correct increase the demand for good B and decrease the demand for good A Incorrect If goods A and Z are complements an increase in the price of good Z will increase the demand for good A Incorrect decrease the demand for good A True Answer Correct decrease the demand for good Z Incorrect decrease the demand for both good A and good Z Incorrect Over the past several years consumers have had an increasing interest in getting a tattoo This means that the for tattoos has quantity demanded increased Incorrect demand decreased Incorrect demand increased True Answer Correct quantity demanded decreased Incorrect Which of the following will not cause an increase in demand for good X a decrease in income if good X is an inferior
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