Shoes 16. What is PButter/pShoes? a. 15 b. 5 C. ¹3 d. 3 30 15 Butter Refer to Diagram 2 for question 16,17,18 and 19

4: What are five fundamental questions (and answers) in economics? Five fundamental questions How do market system answer the question? 1. 2. 3. 4. 5. Chapter 3 starts here. Define "demand" and State the law of demand. Demand is a (s (w_ specified period of (t d ) or a curve which shows the various amounts of a product buyers are ) to purchase at each price in a series of possible prices during a ) and (a ). Demand portrays relationship between ), they are (positively, negatively) related either in the table or in the ( graph ). The law of demand states that, other things being equal, as price increases, the corresponding quantity demanded (rises, falls). Restated, there is a (an) ( direct, inverse ) relationship between price and ) and ( q. quantity demanded with everything else held constant.

7 Option (d) only

I cant seem to remeber the formula to use to fill out S2 and D2

a. b. Quantity of good Y C. d. 0 Y e. 8 X1 X2 X3 The total effect is the movement from X3 to X₂. X4 to X₁. X3 to X₁. X4 to X₂. X₂ to X4. Answer A Answer D X4 Quantity of good X Answer B Answer E || O Answer C X

11 Refer to Figure 3. Assume Tom is on budget constraint AC. If the price of a hamburger is $5, Tom's monthly income is   Select one: a. $20 b. $300 c. $60 d. $100

Question 25 The individual's budget constraint is a. the amount of money she has in the bank c. the maximum amount one good she can consume given her consumption of other goods O d. a line depicting all the possible budgets an individual could have at various occupations

3. Refer to the information provided in Figure below to answer the following questions. Price of pizza +6 0 A B D₁ D₂ Number of pizzas per month D3 a. Under what situation consumer moves from A to B? When they move from C to A? Explain the reasons in both cases. b. Imagine your demand curve for pizza last year was D3. Now the demand is D1. Write down possible reasons for this. Explain this carefully c. Can you expect the demand to increase at the same price? Explain the reasons carefully. d. Can you expect the demand to decrease at the same price? Explain this carefully.

10) Figure 1 shows some indifference curves and budget lines for consumer Yusuf. Milk A B Cheese Figure 1 If Yusuf's income increases, his optimal consumption changes from point A to point B. Which of the following statements is true for Yusuf? (a) Cheese and milk are substitutes. (b) Cheese is an inferior good. (c) Milk is an inferior good . (d) Milk is a normal good. (e) None of the above.

Complete this table on the picture.