An economist has conducted extensive research and has found that Jones Cola is a substitute for Tucker Cola. Ceteris paribus, the price of Jones Cola increases. The impact on the demand curve for Tucker Cola is a(n):
a. increase in demand. b. decrease in demand.
c. increase in quantity demanded. d. decrease in quantity demanded.
QUESTION 2Assuming that beef and chicken are substitutes, an increase in the price of beef, other things being equal, will:
a. increase the demand for chicken. b. decrease the demand for chicken.
c. not change the demand for chicken. d. decrease the demand for beef.
QUESTION 3Assuming that chicken and beef are substitutes, a decrease in the price of beef, other things being equal, will:
a. decrease the demand for beef. b. increase the demand for chicken.
c. decrease the demand for chicken. d. increase the demand for beef.
QUESTION 4Assuming that professional and college football are substitutes, an increase in the ticket price for professional football, other things being equal, will:
a. increase the demand for college football tickets.
b. decrease the demand for college football tickets.
c. not change the demand for college football tickets.
d. decrease the demand for professional football games.
QUESTION 5Assuming that hamburgers and hot dogs are substitutes, an increase in the price of hamburgers, other things being equal, results in a:
a. rightward shift in the demand curve for hot dogs.
b. leftward shift in the demand curve for hamburgers.
c. rightward shift in the demand curve for hamburgers.
d. leftward shift in the demand curve for hot dogs.
QUESTION 6Assuming that Pepsi-Cola and Coca-Cola are substitutes, a rise in the price of Pepsi-Cola, other things being equal, results in a(n):
a. upward movement along the demand curve for Coca-Cola.
b. downward movement along the demand curve for Coca-Cola.
c. leftward shift in the demand curve for Coca-Cola.
d. rightward shift in the demand curve for Coca-Cola.
QUESTION 7Assuming compact discs and cassettes are substitute goods, a decrease in the price of cassettes will cause the demand curve for compact discs to:
a. shift to the left as consumers switch from buying discs to cassettes.
b. shift to the right as consumers switch from buying discs to cassettes.
c. shift to the left as producers increase cassette production and reduce disc production.
d. remain unchanged since discs and cassettes are sold in separate markets.
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