Use the table for the question(s) below.
1)
There are three demanders, A, B, and C. According to the table above, if price were $200 then market quantity demanded would be
1)
______
A)
95 units.
B)
30 units.
C)
145 units.
D)
50 units.
E)
Cannot be calculated with the information available.
Use the figure for the question(s) below.
2)
Given Paula's and Jaime's demand, total market demand at $10 is
2)
______
A)
9 units.
B)
8 units.
C)
7 units.
D)
19 units.
E)
15 units.
3)
When an economy goes into a recession and workers lose their jobs, the demand for inferior goods
3)
______
A)
decreases (shift to the left) because incomes rise during times of unemployment.
B)
increases (shift to the right) because incomes fall during times of unemployment.
C)
does not change because the demands for particular items lag overall economic conditions with an extremely long lag, making the relationship tenuous at best.
D)
increase (shift to the right) because incomes rise during times of unemployment.
E)
does not change because the demands for particular items are not related to overall economic conditions.
4)
Supposecoffeeandteaaresubstitutegoods.Ifthepriceoftearises,
4)
______
A)
there would be noshiftofthedemandcurveforcoffee,butamovementdownandtotherightalongthedemandcurveforcoffee.
B)
thedemandforcoffeewouldshifttotheright.
C)
thedemandforteawouldshifttotheleft.
D)
thedemandforcoffeewouldshifttotheleft.
E)
thedemandforteawouldshifttotheright.
5)
Supposethatwhenlargerebatesandotherpricediscountsareofferedonnewcars,weobserveanincreaseinthedemandforautoinsurancepolicies.Thiswouldsuggest newcarsandautoinsuranceare
5)
______
A)
inferiorgoods.
B)
substitutegoods.
C)
complementarygoods.
D)
normalgoods.
E)
notrelated.
6)
Aproductisaninferiorgoodif
6)
______
A)
whentheproduct'spricefalls,thedemandcurveshiftstotheright.
B)
whenincomefalls,peopledecreasetheirdemandfortheproduct.
C)
whenincomefalls,peopleincreasetheirdemandfortheproduct.
D)
whentheproduct'spricefalls,peoplebuymoreofit.
E)
whentheproduct'spricefalls,peoplebuylessofit.
7)
Supposeramennoodlesareaninferiorgood,andgourmetpastaisanormalgood.Then,ifconsumers'incomesrise,demandforramennoodleswill____anddemandforgourmetpastawill____.
7)
______
A)
increase;decrease
B)
beunchanged;beunchanged
C)
decrease;increase
D)
decrease;decrease
E)
increase;increase
8)
Carcompaniesannounceasaleoncarsthatwillbeginamonthfromnow.Whatofthefollowingislikelytohappentothedemandforcarsnow?
8)
______
A)
Itwilldecrease.
B)
Itwillincrease.
C)
Itwillnotchange,butfuturedemandwillincrease.
D)
Itwillnotchange,butquantitydemandedwilldecrease.
E)
Itwillnotchange,butquantitydemandedwillincrease.