ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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The law of demand implies that, other things being equal:
Select one:
a. as the demand for electronic games increases, the price of electronic games will fall.
b. as the price of electronic games increases, the quantity of electronic games demanded will decrease.
c. as the price of electronic games increases, the quantity of electronic games demanded will increase.
d. as household incomes rise, the quantity of electronic games demanded will decrease.
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- Quiz: Demand i 47 2 S W H X There is a decrease in the number of buyers wishing to purchase cheddar snack crackers. How will this impact the market for cheddar snack crackers? Multiple Choice O #3 Demand for cheddar snack crackers will increase. The quantity demanded of cheddar snack crackers will decrease. Demand for cheddar snack crackers will decrease. The quantity demanded of cheddar snack crackers will increase. a E D C $ 4 R F V SPLO 5 T G * 8 00 1 M ( 9 J. K < O < I 32 -0 L command A P - ; Help Save & Exit I 24 1 { [ option + 11 = ? B ". Submit } 1arrow_forwardIf the price of one good decreasing causes the price of another good to increase, then: a. demand is inelastic. b. the two goods are complements. c. the cross-price elasticity is positive. d. the second good is definitely inferior.arrow_forward16. Demand is said to be elastic if a. the price of the good responds substantially to changes in demand. b. demand shifts substantially when the price of the good changes. c. buyers do not respond much to changes in the price of the good. d. the quantity demanded responds substantially to changes in the price of the good. 17. If a good is a necessity, demand for the good would tend to be a. elastic. b. horizontal. c. unit elastic. d. inelastic. 18. In the case of perfectly inelastic demand, a. quantity demanded stays the same regardless of price changes. b. huge changes in quantity demanded result from very small changes in the price. c. the change in quantity demanded exactly equals the change in price. d. the change in quantity demanded will be twice the change in price. 19. Suppose that you produce jewellery boxes. If the demand for jewellery boxes is elastic and you want to increase your total revenue, you should a. increase the price of your jewellery boxes. b. decrease the price…arrow_forward
- 6. How would an increase in income for an inferior good affect demand for the good? How would an increase in income for a cheap good affect the demand curve for that good? Show graphically.arrow_forwardShow in a diagram the effect on the demand curve, the supply curve, the equilibriumprice, and the equilibrium quantity of each of the following scenarios.c. The market for blueberry muffinsi. Scenario 1: More people become health conscious and realize the highsugar content of muffins. ii. Scenario 2: The price of blueberries has increasedarrow_forwardWhich of the following is NOT a characteristic of Giffen goods? a. The goods have no close substitutes b. The demand decreases with the increase in its price c. Demand increases with the increase in its price d. The demand curve is downward slopingarrow_forward
- Figure 4-6Refer to Figure 4-6. The movement from D’ to D could be caused by a. an increase in the price of a complement. b. a decrease in income, assuming the good is inferior. c. a decrease in price. d. buyers expecting the price of the good to fall in the near future.arrow_forwardFor each of the following scenarios, determine if there is an increase or a demand for the good in italics. a. The price of oranges increases. b. The price of production tires increases. c. Samantha Brown, who is crazy about air travel, gets fired from her job. d. A local community has an unusually wet spring and a subsequent problem with mosquitoes, which can be deterred with citronella. e. Many motorcycle enthusiasts enjoy riding without helmets ( in states where this is not prohibited by law). The price of new motorcycle la rises.arrow_forwarda. Describe according to demand theory why an inferior good or service you have consumed now or in the past is such. b. What do you expect would happen to your consumption of it when your income changed in either direction?arrow_forward
- Jane's budget line A. rotates outward if her budget increases and prices don't change В. shifts outward with no change in its slope if her budget increases and prices don't change C. shifts inward with no change in its slope if the price of one good rises and her budget doesn't change D. rotates inward if the prices of both goods double and her budget doesn't changearrow_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_forwardTrue or False *if the answer is false, expalain it 1. In the market for gasoline, the reason that the equilibrium quantity increased was that the increase in demand was less than the decrease in supply. 2. A fall in the price of iPads would shift the demand curve for iPads to the right. 3. Percentage an increase in the price of good Y is 40% causes a decrease in the quantity demanded of the X by 20%, then good X and good Y are complements. 4. Increasing in the apple price by 40% led to an decrease in the quantity of apple demanded by 60%, then the elasticity of demand is an inelastic type. 5. A price floor set by government will increase the equilibrium price and quantity in a Marketarrow_forward
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