7) By definition, an inferior good is aa) Good for which demand decreases when income increase. b) Want that is not expressed by demand.c) Normal substitute good.d) Good for which demand decreases when its price rises.8) The study of the decisions of individual units in the economy is known asa) Microeconomicsb) Macroeconomicsc) The Study of incentivesd) Ceteris Paribus Study9) If a good has a price, then it is considered _______ ? Supply$1.60I 1.00Demand130200290Quantity4) From the given curve above, find the equilibrium quantity and pricea) P=1.6, Q=130b) P=1, Q=200c) P=0.5, Q=290d) P=0.5, Q=130e) P=1.6, Q=2905) which of the following is not a determinant of a consumer's demand for a commodity?a) Priceb) Incomec) Taste and Preferenced) Technology6) Assume that firms in an industry observe a 15% increase in the productivity of labor, but toget there they had to increase the cost of labor by 10%. What should be expected to happen in theoutput market as a result of this development?a) The Supply should increase.b) The Demand should decreased.c) The Supply should decrease.d) The supply should remain unchanged.

Inferior goods: These are related to a negative income elasticity,

By definition, an inferior good is a a) Good for which demand decreases when income increase. b) Want that is not expressed by demand. c) Normal substitute good. d) Good for which demand decreases when its price rises

By definition, an inferior good is a a) Good for which demand decreases when income increase. b) Want that is not expressed by demand. c) Normal substitute good. d) Good for which demand decreases when its price rises

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section3.3: The Market: Putting Supply And Demand Together

Problem 3ST

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Question

7) By definition, an inferior good is a
a) Good for which demand decreases when income increase.
b) Want that is not expressed by demand.
c) Normal substitute good.
d) Good for which demand decreases when its price rises.

8) The study of the decisions of individual units in the economy is known as
a) Microeconomics
b) Macroeconomics
c) The Study of incentives
d) Ceteris Paribus Study

9) If a good has a price, then it is considered _______ ?

Supply
$1.60
I 1.00
Demand
130
200
290
Quantity
4) From the given curve above, find the equilibrium quantity and price
a) P=1.6, Q=130
b) P=1, Q=200
c) P=0.5, Q=290
d) P=0.5, Q=130
e) P=1.6, Q=290
5) which of the following is not a determinant of a consumer's demand for a commodity?
a) Price
b) Income
c) Taste and Preference
d) Technology
6) Assume that firms in an industry observe a 15% increase in the productivity of labor, but to
get there they had to increase the cost of labor by 10%. What should be expected to happen in the
output market as a result of this development?
a) The Supply should increase.
b) The Demand should decreased.
c) The Supply should decrease.
d) The supply should remain unchanged.

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