ABM001UU Quiz3

The Law of Demand states that a/an ______________ relationship exists between price and quantity demanded.

• direct

• positive

• inverse

• simple

The demand curve is ______________ sloping, illustrating the inverse relationship between price and quantity demanded.

• upward

• positive

• undefined

• downward

An increase in the price of a product would cause the following change:

• an increase in the demand for a product.

• an increase in the quantity demanded for a product.

• a decrease in the demand of a product.

• a decrease in the quantity demanded for a product.

A decrease in the quantity demanded can be shown by

• a rightward shift of the demand curve

• a leftward shift of the demand curve

• movement up, along the demand curve

• movement down, along the demand curve

The increase in the price of milk results in a decrease in the demand for cereal. These two products are

• substitutes

• complements

• unrelated

• replacements

Which of the following choices would most likely cause the change shown in the graph?

• a. People prefer more of this product

• b. Taxes for consumers decrease

• c. The number of buyers in the market decrease

• d. Technology improves production

Which of the following choices would cause the change shown in the graph?

• An increase in the number of consumers

• The price of the product increased

• Inputs became more expensive

• People expected the price of a product to decrease next month

If Pancit Canton is an inferior good, what will happen when consumers’ income decreases?

• a. Demand for Pancit Canton will increase

• b. Demand for Pancit Canton will decrease

• c. Quantity demanded for Pancit Canton will increase.

• d. Quantity demanded for Pancit Canton will decrease.

The decrease in the price of hotdogs results in a decrease in the demand for hamburgers. These two products are

• substitutes

• complements

• unrelated

• replacements

Burritos are a normal good. What will happen when consumers’ income decreases?

• Demand for burritos will increase

• Demand for burritos will decrease

• Quantity demanded for burritos will increase.

• Quantity demanded for burritos will decrease.