Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 4, Problem 1MCQ
To determine
To select:
The correctthat states the effect of rise in price of a good.
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Give one reason for decrease in supply of a good
Which of the following demonstrates the law of demand?
a.
When car production technology improved, car producers increased their supply of cars
b.
When ketchup prices rose, buyers decreased their quantity demanded of ketchup
c.
When consumers expected sweater prices to rise in the near future, they decreased their current demand of sweaters
d.
When the price of leather belts rose, sellers increase their quantity supplied of leather belts
1 i .The price for iPhones in Barbados has increased significantly. Demand for thecellular device has also increased. This is contrary to the law of demand. Doyou agree or disagree? Explain your answer
ii.
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- What are a demand schedule and a demand curve? A. A demand schedule is a table showing how the quantity demanded of some product during a specified period of time changes as the price of that product changes, holding all other determinants of quantity demanded constant. When the points of quantity demanded and prices are plotted on a graph, it is called a demand curve. B. C. D. A demand schedule is a table showing how the quantity demanded of some product during a specified period of time changes as the price of that product changes. When the data is plotted it on a graph is called a demand curve. A demand schedule is a table showing how the quantity demanded of some product as the price of that product changes. When the data is plotted on a graph it is called a demand curve. A demand schedule is a table showing the quantity demanded of good or service by rational individuals with steady income. When the data is plotted on a graph it is called a demand curve.arrow_forwarda. A change in the price of bicycles will lead to a shift of the demand curve for bicycles. T F b. A change in the price of automobiles will lead to a shift of the demand curve for motorcycles We call this shift a change in demandT F A change in demand is equivalent to a movement along a given demand curve. T F d. When price of a good decreases, the quantity demanded increases. TFarrow_forwardHi there Can you please assist on the following Name and explain five determinants that can cause an increase in demand for a particular good.arrow_forward
- Which of the following would most likely increase the demand for peanut butter? a. the invention of a new product that consumers think is a good substitute for peanut butter b. crop failures that raise the price of peanuts c. the discovery that excessive consumption of peanut butter is harmful to one's health d. a decrease in the price of jelly, a good that is often used with peanut butterarrow_forwarda. Do you agree with the following statements? Explain your answers. i. The price of butter rises, causing the demand for another good to fall. This implies that the goods are substitutes. ii. During the pandemic, incomes fell for many Bahamians this change would likely lead to a decrease in the prices of both normal and inferior goods. iii. If the demand and supply of lobster increases at the same time price will rise. iv. The price of milk falls. This causes an increase in the price of good cheese. Therefore, milk and cheese are complements.arrow_forwardSuppose the national institutes of health publishes a study finding that coffee drinking reduces the probability of getting colon cancer 1. How do you image this will affect the market of coffee? 2. Why 3, Which determinant of demand or supply is being affected? 4. How will the change of the equilibrium price and quantity of coffee? Explain your reasoningarrow_forward
- If we observe an increase in the price of a good and an increase in the amount of the good bought and sold, this could be explained by a. a decrease in the supply of the good. a. a decrease in the supply of the good. b. an increase in the demand for the good. b. an increase in the demand for the good. c. a decrease in the demand for the good. c. a decrease in the demand for the good. d. an increase in the supply of the good.arrow_forwardwhat will An increase (rightward shift) in the demand for a good will tend to causearrow_forwardImagine that the table shows the quantity demanded of UGG boots at five different prices in 2021 and in 2022. Which of the following variables could cause the demand for UGG boots to change as indicated from 2021 to 2022? (Check all that apply.) A. The expectation that UGG boots will rise in price. B. A decrease in buyer incomes. C. An increase in the price of UGG boots. D. An increase in the price of a complementary good. Price $160 170 180 190 200 Quantity Demanded 2021 8,000 7,500 7,000 6,500 6,000 Quantity Demanded 2022 7,000 6,500 6,000 5,500 5,000arrow_forward
- From the list below, choose the statement in which the terms "quantity demanded" and "demand" are properly used. O When the price of coffee rose, the demand for coffee fell, and the quantity demanded of creamer fell. O None of these statements use the terms properly. O When the price of coffee rose, the quantity demanded of coffee fell, and the demand for creamer fell. O When the price of coffee rose, the demand for both coffee and creamer fell. Previousarrow_forwardQ1 On the graph below, draw the direction of change for the demand curve for concert tickets when consumers' incomes rise, ceteris paribus. Assume that concert tickets are a normal good. P D1 Q Q2. Which of the following best describes the law of supply? An increase in price causes an increase in the quantity supplied, and a decrease in a. price cause decrease in the quantity supplied, all else held equal. b. A change in price causes a shift of the supply curve, all else held equal. Supply shifts are caused not by a single variable but most likely by a number of different variables d. All of the above. Q3. Use the following equations for the supply and demand of hockey sticks to find the equilibrium quantity Q*. P=50-4QD P=10+4QS Q4. What is achieved when a good or service is produced up to the point where the marginal benefit to consumers is equal to the marginal cost of producing it? Q5. Refer to the graph below. The dot represents a point on the individual's yearly demand curve for…arrow_forwardWhich of the following most correctly states the law of demand? Group of answer choices A. As the price goes up, all other things unchanged, demand will go down. B. As the price falls all other things unchanged, demand will go up. C. As the price falls, all other things unchanged, the quantity demanded will go down. D. As the price falls, all other things unchanged, the quantity demanded will increase.arrow_forward
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