Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter P2, Problem 11KC
To determine
The meaning of the income effect.
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Which of the following is NOT a non-price factor that influences only demand? A. Income B. Number of buyers C. Expected Price D. Preferences
When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n):
A. increase in the demand for gasoline.
B. decrease in the demand for gasoline.
C. increase in the supply of gasoline.
D. decrease in the supply of gasoline.
In the market for a normal good, an increase in income will cause an increase in _____, an increase in quantity _____, and a(n) _____ in price.
A.) demand; supplied; increase
B.) demand; supplied, decrease
C.) supply; demanded; increase
D.) supply; demanded; decrease
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- Tammy spends her money on lemonade and iced tea. If the price of lemonade falls, it is as though her income a. Increases. b. Decreases. c. Stays the samearrow_forwardConsider the demand for jam would be either create a movement along the demand curve or a shift. 1. An increase in the price of jam? 2. A change in tastes of consumers that makes them desire more jam. 3. A change in the expectations of consumers about their future income.arrow_forwardWhich of the following increases the supply of meals from KFC? a. Consumers' incomes increase and meals from KFC are a normal good. b. Consumers' incomes decrease and meals from KFC are a normal good. c. The price of movies, a complement to KFC meals, increases. d. Cashiers receive a reduction in salaryarrow_forward
- 1. what is a supply? 2. what is a quatity supplied? 3. what is the difference between supply and quantity supplied? 4. change in supply versus change in quatity supplied.arrow_forwardExplain all the reasons why a decrease in the price of a product would lead to an increase in purchases of the product. arrow_forwardWhat is a "normal" good? Select one: a. a good for which demand varies inversely with household income b. a good for which demand does not vary with household income c. a good for which demand varies directly with household income d. a good that normal people consume e. a good that everyone normally consumesarrow_forward
- a. What are the determinants of demand? Instructions: Click the box with a check mark for correct or click a second Income Price of related goods ? A good's own price ?Technology Tastes and preferences ? Resource prices Number of consumersarrow_forward4arrow_forwardUse the midpoint method of calculating percentage changes in this question. Heidi used to bake and sell 3 custom cakes each week when the price of cake was $35. Now that the price has increased to $45, she bakes and sells 5 cakes. What was the 'percentage change' in quantity supplied of cakes for Heidi? %. Is this 'percentage change' positive or negative? What was the 'percentage change' in price of cakes? %. Is this 'percentage change' positive or negative? What was Heidi's price elasticity of supply? (round to 2 decimal places] Is this considered 'elastic', 'inelastic', or 'unit elastic'?arrow_forward
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