1. The X-Corporation produces a good (called X) that is a normal good. Its competitor, Y-Corp., makes a substitute good that it markets under the name “Y. ”Good Y is an inferior good. How will the demand for good X change if consumer incomes increase? * a. Increase b. Decrease 2. The X-Corporation produces a good (called X) that is a normal good. Its competitor, Y-Corp., makes a substitute good that it markets under the name “Y. ”Good Y is an inferior good. How will the demand for good Y change if consumer incomes increase? * a. Increase b. Decrease 3. The X-Corporation produces a good (called X) that is a normal good. Its competitor, Y-Corp., makes a substitute good that it markets under the name “Y. ”Good Y is an inferior good
1. The X-Corporation produces a good (called X) that is a normal good. Its competitor, Y-Corp., makes a substitute good that it markets under the name “Y. ”Good Y is an inferior good. How will the demand for good X change if consumer incomes increase? * a. Increase b. Decrease 2. The X-Corporation produces a good (called X) that is a normal good. Its competitor, Y-Corp., makes a substitute good that it markets under the name “Y. ”Good Y is an inferior good. How will the demand for good Y change if consumer incomes increase? * a. Increase b. Decrease 3. The X-Corporation produces a good (called X) that is a normal good. Its competitor, Y-Corp., makes a substitute good that it markets under the name “Y. ”Good Y is an inferior good
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
1. The X-Corporation produces a good (called X) that is a normal good. Its competitor, Y-Corp., makes a substitute good that it markets under the name “Y. ”Good Y is an inferior good. How will the demand for good X change if consumer incomes increase? *
a. Increase
b. Decrease
2. The X-Corporation produces a good (called X) that is a normal good. Its competitor, Y-Corp., makes a substitute good that it markets under the name “Y. ”Good Y is an inferior good. How will the demand for good Y change if consumer incomes increase? *
a. Increase
b. Decrease
3. The X-Corporation produces a good (called X) that is a normal good. Its competitor, Y-Corp., makes a substitute good that it markets under the name “Y. ”Good Y is an inferior good. How will the demand for good X change if the price of good Y decreases ? *
a. Increase
b. Decrease
4. The X-Corporation produces a good (called X) that is a normal good. Its competitor, Y-Corp., makes a substitute good that it markets under the name “Y. ”Good Y is an inferior good. Is good Y a lower-quality product than good X ? *
a. Yes
b. No
5. Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X if the price of input A increases. *
a. Increase
b. Decrease
c. None of the above
6. Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X if an excise tax of P 1 is imposed on good X . *
a. Increase
b. Decrease
c. None of the above
7. Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X if an ad valorem tax of 5% is imposed on good X . *
a. Increase
b. Decrease
c. None of the above
8. Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X if a technological change reduces the cost of producing additional units of X . *
a. Increase
b. Decrease
c. None of the above
9. Suppose the supply function for product X is given by QxS = - 50 + 0.5Px - 5Pz. How much of product X is produced when Px $500 and Pz $30? *
a. - 50
b. +50
c. 150
d. None of the above
10. An economist estimated the cross-price elasticity for peanut butter and jelly to be 1.5 . Based on this information , we know the goods are *
a. inferior goods
b. complements
c. inelastic
d. substitutes
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