Which of the following statements about the law of demand is correct?Select one:a. According to the substitution effect, persons will buy more of good X when the price of good X increases, as this affects the price of X relative to the prices of other goods. b. As a result of the income effect, persons will buy less of good Y when the price of good Y increases, because the increase in the price of Y decreases the real value of their income. c. According to the law of demand, wants and needs are determined by the price of goods. d. When the price of good Z increases, an upward movement along the demand curve for good Z will take place, and the quantity demanded of good Z will increase due to the higher price.

Which of the following influences people's buying plans and varies moving along a demand curve?A) preferences .B) the price of the good C) income D) the prices of related goods

A change in a relevant factor other than the price of the good itself causes a ________ the demand curve, and a change in a good's own price causes a ________ the demand curve. *         a)shift of; shift of       b)shift of; movement along       c)movement along; movement along       d)movement along; shift of

Assume a household can choose to consume units of food and units of housing. Say that the price of housing rises and that both food and housing are normal goods. What would happen to housing consumption and food consumption? Increase/Decrease/Uncertain? Explain.

Which of the following describes the change in the quantity demanded of Good X and Good Y when income increases by $100? Group of answer choices A) Quantity demanded of Good X increases; Quantity demanded of Good Y increases B)Quantity demanded of Good X increases; Quantity demanded of Good Y decreases C) Quantity demanded of Good X decreases; Quantity demanded of Good Y uncertain D)Uncertain , It depends on whether Good X and Good Y are normal goods or inferior goods.

A consumer has $300 to spend on goods X and Y. The market prices of these two goods are Px = $15 and Py = $5. Draw the budget constraint for X and Y. Suppose the income increases by $300. How does this increase in income affect the budget line and the market rate of substitution between goods X and Y? Draw a shift on the same graph of what happens to the budget constraint line when the price of good Y increases to $10. How does this change in the price of good X affect the market rate of substitution between goods X and Y?

If the price of good X is $10 and the price of good Y is $5, how much of good X can the consumer purchase if her income is $15 and she spends it entirely on purchasing good X?

According to a recent study, "Stricter college alcohol policies, such as raising the price of alcohol, or banning alcohol on campus, decrease the number of students who use marijuana." On the basis of this information, how would you describe alcohol and marijuana?     They are both luxury goods.     There is no relationship between the two goods.     The two goods are substitutes in consumption.     The two goods are complements in consumption.

When there is a change in the price of a related good, demand increases or decreases depending on the relationship between the two goods. Two economic terms describe these two relationships-substitutes and complements. An increase in the price of Good A increases demand for Good B when the two goods are substitutes. An increase in the price of Good A decreases demand for Good B when the two goods are complements.The graph shows the shift in the demand for good B when the price of good A increases depending on whether the two goods are substitutes or complements. Pick from the bold choices below. pls look at the graph.  In Mexico, NAFTA had the result of lowering the price of used cars. Consider the effect of the price of used cars on the demand for new cars in Mexico. When the price of used cars in Mexico fell the Mexican demand for new cars (Increase or decrease). This would cause the new car demand curve in Mexico to (Shift right or shift left). The price of new cars in Mexico would…

Consider the market in the figure to the right. What happens to the market demand curve if consumer income decreases? Using the line drawing tool, graph the new demand curve with a lower level of income. (Assume the good is a normal good.) Label it D'. Carefully follow the instructions above, and only draw the required object. Price D Quantity ✔