If people buy less chewing gum at every price when their incomes fall, then:
a. chewing gum is a normal good.
b. the demand for chewing gum is positively sloped.
c. demand for chewing gum has increased.
d. the price of chewing gum has increased.
e. there has been a decrease in population that changed demand.
QUESTION 2An increase in the demand for peanut butter, a normal good, can be caused by a(n):
a. decrease in consumer income.
b. increase in the price of jams, jellies, and preserves.
c. decrease in the price of bread.
d. drought in Georgia that destroyed 30 percent of the peanut crop.
e. decrease in the price of bologna.
QUESTION 3Which of the following will cause the demand curve for a good to shift to the right?
a. Decrease in income for a normal good.
b. Increase in the price of a complementary good.
c. Decrease in the price of the good.
d. Increase in the price of a substitute good.
e. Expectation of a future price decline.
QUESTION 4If tofu is a normal good, an increase in income will:
a. cause tofu to sell at a lower price.
b. increase the production of tofu.
c. shift the demand curve for tofu to the left.
d. shift the demand curve for tofu to the right.
e. rotate the supply curve in a clockwise manner.
QUESTION 5If an individual's income increases, then the demand for a normal good will:
a. decrease.
b. increase.
c. remain constant.
d. rotate.
e. fall to zero.
QUESTION 6A normal good is a good for which demand increases as:
a. the income of consumers increases.
b. its own price increases.
c. the price of close substitutes decreases.
d. the total number of consumers increases.
e. a reflection of changing consumer tastes.
QUESTION 7Assuming that clothing is a normal good, an increase in consumer income, other things being equal, would:
a. increase the demand for clothing.
b. decrease the demand for clothing.
c. increase the quantity of clothing demanded.
d. decrease the quantity of clothing demanded
QUESTION 8If consumer incomes go up and Harley Davidson motorcycles are a normal good, the effect on the demand for motorcycles, ceteris paribus, will be a(n):
a. upward movement along the demand curve for motorcycles.
b. downward movement along the demand curve for motorcycles.
c. rightward shift in the demand curve for motorcycles.
d. leftward shift in the demand curve for motorcycles.
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