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- As a general rule, is it safe to assume that a change in the price of a good will always have its most significant impact on the quantity demanded of that good, rather than on the quantity demanded of miller goods? Explain.14. Demand for factors of production is A. O Derived demand B. O Joint demand C. O Composite demand D. O None of the aboveWEXFORDZ diagram, draw 2. In a supply and demand the shift bf'the demand curve for hamburgers in following events. In each case, effect on hometown due to the your equili brium price 'and quantity d In come falls in town. Assume hamburgers are for möst people. that an inferior good e Hot doa stands cut the price of hot dogs.
- 1. An increase in the expected price of oil would likely A. increase both the current demand and the current supply of oil. B. decrease both the current demand and current supply of oil. C. increase the current demand but decrease the current supply of oil. D. increase the current supply but decrease the current demand of oil. E. not affect the current demand nor current supply of oil. 2. Which of the following will not shift a supply curve of a good? A. A change in the price of relevant resources used to produce the good. B. A change in the good's price. C. A change in the technology used in producing the good. D. A change in the number of sellers of the good. E. A change in taxes affect this good's industry.An increase in the price of Wood will shift thesupply of furniture to the left or inwards.Select one:Oa. FalseO b. TrueThe fact that a fall in the price of a good results in a decrease in the quantity of the good supplied illustrates Select one: A. the law of demand. B. the law of supply. C. the nature of an inferior good. D. technological improvement. O E. a change in supply.
- For a good that is a necessity a. quantity demanded tends to respond substantially to a changein price.b. demand tends to be inelastic.c. the law of demand often does not apply.d. All of the above are correcThe law of demand states that if other factorsremain constant there isSelect one:a. An exponential relationship between priceof a good and the quantity demanded.O b. A negative relationship between the priceof a good and the quantity demanded.oc. A linear relationship between price of agood and the quantity demanded.O d. A positive relationshipbetween the price ofa good and the quantity demanded.Directions: Read each scenario. Illustrate the change in demand or change in quantity demanded for the good mentioned in each scenario on the graphs provided. Write if it was a change in demand or a change in quantity demanded. List the determinant. 1. TheMarketinquestionisthebagelmarket.If the price of cream cheese rises, what do you expect to happen to the demand for bagels? A). Will the demand change (shift of the curve) of will the quantity demanded change (movement along the line)? Answer:______________________________________ B). If demand changes, will the curve shift to the right (increase in demand) or shift to the left (decrease in demand)? Please draw this on the graph above. C). If the demand changes, what is the factor or determinant affecting the change? Please see Supply/Demand Cheat Sheet...Hint: income (normal or inferior good, complement or substitute good), prices of related goods, tastes, expectations, population or numbers of buyers?…
- Which one of the following statements is correct?A. “Demand” and “claim” have the same meaning.B. To demand a good requires only a desire to possess the good.C. Demand relates to plans, not to events that have occurred already.D. “Demand” and “need” have the same meaning.E. Demand refers to the quantities that consumers bought recentlyIn supply and demand theory, an increase in consumer income will: A. Shift the demand curve for a normal good in and to the left, lowering the equilibrium price but raising the equilibrium quantity. OB. Shift the supply curve out and to the right, lowering the equilibrium price but raising the equilibrium quantity. OC. Shift the demand curve for a normal good out and to the right, raising the equilibrium price and quantity. D. Shift the demand curve for a normal good out and to the right, lowering the equilibrium price but raising the equilibrium quantity. OE. Shift the supply curve in and to the left, lowering the equilibrium price and quantity. Moving to the nextind the flaws in reasoning in the following statements, paying particular attention to the istinction between shifts of and movements along the supply and demand curves. Draw a iagram to illustrate what actually happens in each situation. a. A technological innovation that lowers the cost of producing a good might seem at first to result in a reduction in the price of the good to consumers. But a fall in price will increase demand for the good, and higher demand will send the price up again. It is not Onin, therefore, that an innovation will really reduce price in the end."