Answered: 2. If income doubles and the quantity…

2. If income doubles and the quantity demanded of god X more than doubles, then good X can be described as a substitute good. b. complement good. c. necessity. d. luxury. a.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 2QFR

See similar textbooks

Similar questions

Owen saw that the price of peaches had gone down, and so he decided to buy more peaches. Based on this information only, what does Owen's reaction reflect? Choose 1 answer: A Owen's demand for peaches has increased. B Owen's quantity demanded for peaches has increased. Owen has experienced an increase in income. Owen observed that there has been an increase in the price of other fruit, a substitute for peaches. Owen expects future price changes.
Select one: a. a decrease in the price of 7-UP, assuming 7-UP is a substitute for Dr. Pepper b. an increase in the price of sugar used to make Dr. Pepper c. an increase in the price of Dr. Pepper d. an increase in income, assuming that Dr. Pepper is a normal good
(9) What determines the utility an individual receives from consuming a good? Select one: a. The individual’s own preferences. b. The demand and supply curves for that good. c. The producers conducting customer feedback surveys of that good and the feedback provided. (10) Denzel bought headphones two months ago, Solo2 Beats by Dre, for $130. He gives them to his little brother and goes online to buy another for himself but they are now $160. What is the percentage change in the headphone’s price? Select one: a. 23% b. 30% c. 21%
If the price of a good falls, before the amount consumed changes the marginal utility per dollar from that good a. might either increase or decrease depending on whether the good is a substitute or a complement. b. More information is needed to determine the answer. C. increases. d. decreases.
3. If X is a complementary good, which is the correct economic implication about changes in the demand for X? a. When income goes up, demand for X goes up. b. When income goes up, demand for X goes down. c. When the price of some other good goes up, demand for X goes up. d. When the price of some other good goes up, demand for X goes down. Topic covered in current section Report a problem 4. The elasticity of a demand between any two points on a demand curve is measured as a. % change in quantity demanded divided by % change in price b. the slope of the demand curve c. 1/slope of the demand curve d. change in price change in quantity demanded
Q#10
What are the influences on buying plans that change demand, and do these influences increase or decrease demand? Complete the following question about a change in demand. The graph shows a demand curve for coffee makers. Draw a demand curve that shows what happens in the market for coffee makers if incomes increase and a coffee maker is a normal good, but all other influences on buying plans remain the same. Label the curve D₁. When an event occurs that changes the demand for coffee makers, and _____if demand decreases. O A. a movement up along the demand curve occurs; a movement down along the demand curve occurs О в. the demand curve shifts rightward; the demand curve shifts leftward C. the demand curve shifts leftward; the demand curve shifts rightward if demand increases OC O D. a movement down along the demand curve occurs; a movement up along the demand curve occurs E 24 20- 16- 12- 8- Price (dollars per coffee maker) Po Quantity (millions of coffee makers per year) >>> Draw only…
For a particular good, a 10 percent increase in price causes a 3 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good? a. The relevant time horizon is short. b. The good is a luxury. c. The market for the good is narrowly defined. d. There are many close substitutes for this good. Selected Answer: C. C
22. If the cross elasticity of demand between bread rolls and cheese is -3,0, this implies that these goods are A luxuries. B complements. C necessities. D substitutes. E income inferior goods. 23. If the cross elasticity of demand for two goods, A and B, is +5,0, then this implies that these goods must be A luxuries. B complements. C necessities. D substitutes. E income inferior goods. 24. In economics, the short run is a period of time A of one year or less. B in which all inputs are variable. C in which all inputs are fixed. D in which the quantity of at least one input is fixed and the quantities of the other inputs can be varied. E in which all inputs are variable but technology is fixed. 25. A perfectly competitive firm is referred to as a A price giver. B price taker. C price maker. D price cutter. E price setter.
Indicate whether the statement is True or False, and briefly explain why: A. Marginal benefit equal to marginal cost is the point where consumers are maximizing their satisfaction within their budget. B. The marginal benefit is equal to the marginal utility you obtain from consuming one extra unit of the good. C. What matters for consumers when they want to decide to buy one more unit of a good is how much utility they got from all the units they consumed before. D. Elasticity can be related to the measure of a percentage change in quantity demanded divided by the percentage change in the price of a good.
Activity 1. Answer the following questions: a. Illustrate and explain how consumer equilibrium is achieved using the indifference curve? b. How do we measure utility? Explain. c. Discuss how the demand elasticity of a product changes? Give examples.
Question 1 a. Identify whether good X and good Y are substitutes or complements , that is find the cross elasticity of demand , if the price of X increases from $ 13 to $ 17 and the quantity demanded for good Y increases from 65 units to 75 units . (You may do it using percentage formula or the average). b. Draw the diagram showing what happens when the price of X increases from $ 13 to $ $ 17 and the quantity demanded for good Y increases from 65 units to 75 units.