Studies show that the demand curve for peas has shifted. Which of the following explanations would you reject first?
a. The price of string beans has changed.
b. The demand for corn has changed.
c. The demand for string beans has changed.
d. The income of consumers has changed.
e. The price of peas has changed.
QUESTION 2The demand curve for spinach shows the quantity demanded of spinach
a. only at the equilibrium price of spinach
b. at each possible price of spinach
c. as income increases
d. as income decreases
e. at each possible price of a substitute good
QUESTION 3Which of the following statements about demand is true?
a. Since most college students want a Mercedes sports coupe, their demand for it is high.
b. If price increases, the demand curve shifts to the right.
c. The demand curve for bacon will not shift when the price of bacon changes.
d. If a supply curve shifts, thereby changing the price, the demand curve will shift as well.
e. If a demand curve shifts, the supply curve will shift as well, whether or not the price changes.
QUESTION 4A demand curve usually has a
a. negative slope because price and quantity demanded are inversely related
b. negative slope because as price rises, demand falls
c. positive slope because price and quantity demanded are positively related
d. positive slope because price and quantity demanded are inversely related
e. slope of zero because there is no change along a demand curve when everything else is held constant
QUESTION 5The income effect of an increase in the price of hominy grits (an inferior good) is a(n)
a. decrease in the demand for hominy grits
b. decrease in the quantity demanded of hominy grits
c. increase in the demand for hominy grits
d. increase in the quantity demanded of hominy grits
e. new demand curve because everything else is no longer constant
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