An increase in demand could arise from which of the following factors Select one: O a. O b. OC. O d. an increase in income a decrease in the price of a complement an increase in the price of a substitute all of the above

An increase in demand could arise from which of the following factors Select one: O a. O b. OC. O d. an increase in income a decrease in the price of a complement an increase in the price of a substitute all of the above

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 15CTQ: Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the...

See similar textbooks

Related questions

Q: None

A: A demand curve highlights the relationship between the price and quantity demanded. A negative…

Q: Which of the following most likely explains why cigarettes has a price elasticity of demand of…

A: The measure of the sensitivity of the quantity (Q) demanded of a product or service to changes in…

Q: Question 29 The law of demand states that, other things equal, when the price of a good O falls, the…

A: Equilibrium is achieved at the output level where Qs equals Qd

Q: 1. Consumers perceive coffee and tea as substitutes.How would a decrease in the supply of coffee…

A: Substitutes are those goods or services which can be used in place of the other, to serve the same…

Q: When economists say the quantity demanded of a product has increased, they mean the demand curve has…

A: Answer: C (the price of the product has fallen, and consequently, consumers are buying more of it)…

Q: Analyze the following diagram: Price ($) 12 Chart of Demand Elasticity C O perfectly elastic. O…

A: A demand curve is a graphical representation in economics that illustrates the relationship between…

Q: Assuming ceteris paribus, what principle behind the law of demand is this graph illustrating?…

A: The demand curve is an illustration of the relationship between the price and the quantity demanded…

Q: Refer to the graph below: D, Price D. D, D. X, Pounds per month The demand curve and supply curve…

A: In the given graph, a shift from DD curve to D1D1 curve explains the rightward shift and it happens…

Q: A 10 percent increase in income leads to a 15% decrease in the quantity of Cheetos demanded but no…

A: The answer is as follows:-

Q: When supply increases, the effect is a large decrease in price and a small increase in quantity…

A: An individual’s willingness to pay for each unit of the quantity he or she wishes to consume is…

Q: At a price of $8, Primo’s sold 20 cheese pizzas. When Primo’s raised the price to $10, the quantity…

A: The ability to determine whether a company's goods or services are elastic is critical to the…

Q: If the price of light bulbs rises, what happens to light bulb's demand curve? Light bulb's demand…

A: When price of light bulbs rises, the demand curve status:-

Q: If the cross-price elasticity of demand of two goods is negative, what are those two goods called?

A: Cross price elasticity of demand means the magnitude of change in the quantity demanded for a given…

Q: None

A: The quantity of gym memberships demanded changes from: Option (A) 8 million to 16 million.This is…

Q: raw a market demand for a good that has many substitutes. You will recall that price elasticity of…

A: Market demand: The demand function reflects an individual’s willingness to pay for each unit of the…

Q: To say there is an elastic demand for a product means that O consumers are not very responsive to a…

A: Price elasticity of demand measures the responsiveness of change in quantity demand of a product to…

Q: 20% and the quantity of demand decreases by 30%, the demand for the goods is inelastic

A: Elasticity of demand depicts how much consumer responds with the change in the price level.

Q: Which of the following will NOT cause a shift in the demand curve? O Taste and preferences Price O…

A: The cornerstone of microeconomics is the concept of supply and demand. The quantity that individual…

Q: A good's price elasticity of demand depends in part on how necessary it is relative to other goods.…

A: Part (1) If a good has a higher number of close substitutes, then that good has a relatively…

Q: Suppose that the cross-price elasticity of demand between good x and y is negative. This implies…

A: Hello, thank you for the question. Since there are multiple questions asked here, only the first…

Q: None

Q: A 15 percent decrease in the price of potato chips leads to a 30 percent increase in the quantity of…

A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in…

Q: The supply curve for televisions is given by QS=−20+4P where QS represents the quantity of…

A: Elasticity of demand depicts how much consumer responds with the change in the price level.

Q: For which of the following goods is the income elasticity of demand likely highest?

A: The income elasticity of demand is likely to be the highest for

Q: A taco shop observes that when it increases the price of a taco, total revenue from taco sales…

A: Inelastic demand is a term used by economists to describe a situation where there is no change in…

Q: Question 5 a. Using the table below which outlines the price and quantity demanded of three goods,…

A: Elasticity of demand measures the responsiveness of quantity demanded changes as a result of price…

Q: Which of the following would cause a shift in the demand curve from point A to point B? OA. An…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…

Q: QUESTION 11 Jennifer, an accountant, is promoted at the company she works for. Therefore, her salary…

Q: If products A and B are complements and the price of B decreases, the: O A demand curves for both A…

A: Market demand curve for a commodity shifts as a result of a change in consumers income, their…

Q: Holding everything else constant, an increase in the price of MP3 players will result in a decrease…

A: 1) a decrease in the quantity of MP3 players demanded. Demand curve shows combinations of price and…

Q: If macaroni and cheese is an inferior good and an increase in consumer income occurs, then which of…

A: The quantity demanded of a good is defined as the amount of the good consumers are willing and able…

Q: You're given the following individual demand tables for comic books. a. Calculate market demand.…

A: a. A market is a place where the buyers and sellers interact with each other and the goods and…

Question

An increase in demand could arise from which of the following factors
Select one:
O a.
O b.
OC.
O d.
an increase in income
a decrease in the price of a complement
an increase in the price of a substitute
all of the above

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define demand of a product:

VIEW

Step 2: Determine the factors that increase the demand:

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Economists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose income elasticity is less than one and those whose income elasticity is greater than one. Think about products that would fall into each category. Can you come up with a name for each category?
What does a downward-sloping demand curve mean about how buyers in a market will react to a higher price?
Would you expect supply to play a more significant role in determining the price of a basic necessity like food or a luxury like perfume? Explain. Hint: Think about how the price elasticity of demand will differ between necessities and luxuries.
The avenge annual income rises from 25,000 to 33,000, and the quantity of bleed consumed in a year by the avenge person falls from 30 loaves to 22 loaves. What is the income elasticity of bread consumption? Is bread a normal or an inferior good?
Suppose the cross-price elasticity of apples with respect to the price of oranges is 0.4, and the price of oranges falls by 3. What will happen to the demand for apples?
The equation for a demand curve is P=483Q. What is the elasticity in moving from quantity of 5 to a quantity of 6?
Suppose both of these events took place at the same time. Combine your analyses of the impacts of the iPod and the tariff Induction to determine the likely impact on the equilibrium price and quantity of Sony Walkman-type products. Shaw your answer graphically.
Consider the demand for hamburgers. If the price of a substitute good (for example, hot dogs) increases and the price of a complement good (for example, hamburger buns) increases, can you tell for sure what will happen to the demand for hamburger? Why or why not? Illustrate your answer with a graph.
According to the previous discussion, what factors influence the price elasticity of demand for cigarettes? What other factors not mentioned in the article might influence the price elasticity of demand for cigarettes?
Maria has decided always to spend one third of her income on clothing. a. What is her income elasticity of clothing demand? b. What is her price elasticity of clothing demand? c. It Marias tastes change and she decides to spend only one fourth of her income on clothing, how does her demand curve change? What is her income elasticity and price elasticity now?
(Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of demand measures, for a given price, the __________ in quantity demanded divided by the __________ income from which it resulted. b. If a decrease in the price of one good causes a decrease in demand for another good, the two goods are __________. c. If the value of the cross-price elasticity of demand between two goods is approximately zero, they are considered __________.
What is the formula for the income elasticity of demand?