37. If commodity Mis an inferior good, which of the following must be true? a. The demandcurve for commodity M is horizontál b. An increase in the price of commodity M will decrease the supply of commodity M An increase in consumer income will decrease the demand for commodity M d. A decrease in conšumer 'încome will decrease the supply of commodity M.

37. If commodity Mis an inferior good, which of the following must be true? a. The demandcurve for commodity M is horizontál b. An increase in the price of commodity M will decrease the supply of commodity M An increase in consumer income will decrease the demand for commodity M d. A decrease in conšumer 'încome will decrease the supply of commodity M.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q.21 The reason for shift in demand curve towards right is: (a) Due to fall in price (b) Due to fall in income in case of normal good (c) Rise in price of substitute good (d) All the above
20. If a point in the demand curve points upward, a. quantity demanded b. price shifted to the downward c. quantity demanded have decreased d. quantity demanded have increased
Which of the ff. will shift the demand curve for beef to the right? A. Widely publicized study that beef increases your cholesterol level B. Reduction in the cost of raising cattle C. Effective advertising campaign promoting pork consumption D. Reduction in the income of the beef consumers
19. C. d. e. I In the graph above, a movement from point G to point H would represent: a. A decrease in demand. b. 7 -Di ·Da. The impact of an increase in the price of a substitute good. Higher prices for the inputs used to produce this product. The impact of a decrease in consumer's income for a product that is a normal good. The impact of a decrease in the price of a substitute good. S
If soup is an inferior good and income rises, then: a. the equilibrium price of soup and the equilibrium quantity of soup will both rise. b. the equilibrium price of soup will rise and the equilibrium quantity of soup will fall. c. the equilibrium price of soup and the equilibrium quantity of soup will both fall. d. the equilibrium price of soup will fall and the equilibrium quantity of soup will rise.
21. The price of chicken increases as the result of higher beef prices. This indicates that a chicken and beef are substitutes b. chicken and beef are complements c the market demand for beef is inelastic. d. the market demand for chicken is elastic.
P A D quantity Refer to Figure 4-1. The movement from point A to point B on the graph shows a(n) a. decrease in demand. b. increase in demand. C. decrease in quantity demanded. d. increase in quantity demanded.
Question 9
The law of supply says that A. The quantity supplied of a product rises when the prices of the product rises B. The quantity supplied of a product rises when prices of the product fall. C. The quantity demanded of a product rises when the prices of the product rise. D. The quantity demanded of a product falls when the prices of the product falls.
The relationship between price and quantity supplied is. Select one: a. the same as the relationship between price and quantity demanded b. positive c. None of the answers are correct O d. negative
37. If commodity Mis an inferior good, which of the following must be true? a. The demand curve for commodity M is horizontal b. An increase in the price of commodity M will decrease the supply of commodity M An increase in consumer income will decrease the demand for commodity M d. A decrease in consumer income will decrease the supply of commodity M.
If the price of a product is below the equilibrium price, the result will be A. A shortage of the good. B. A surplus of the good. C. A decrease in the supply of the good. D. An increase in the demand of the good.