Microeconomics III

If there are two goods with positive prices and the price of one good is reduced, while income and other prices remain constant, then the size of the budget set is reduced.

• True

• False

The graph represents: Demand or Supply?

• Demand
• Supply

Elastic or Inelastic

• Elastic
• Inelastic

Elastic or Inelastic

• Elastic
• Inelastic

Amount of a product consumers will buy at a given prices is called what?

• Substitute
• Demand

Law of demand says if the price of pizza falls, the demand for pizza will what?

• Increase
• Decrease

When the population of Ankeny increases, the demand will: increase or decrease?

• Increase
• Decrease

A necessity is something we need to live. Which answer describes a necessity?

• Food
• School

What kind of graph is this?

• Supply
• Demand

This activity (Picture) was an example of what?

• Diminishing Marginal Return
• Elastic Supply