NON PRICE FACTORS (P & O)

Which of the following is a substitute good?

• Printers and ink cartridges

• Coffee and tea

• Cars and gasoline

• Smartphones and mobile apps

If the price of a substitute good increases, the demand curve for the other good will _______

• Shift to the left

• Shift to the right

• Stay the same

• Become vertical

What happens to the demand for a complementary good if the price of its counterpart increases?

• The demand decreases

• The demand increases

• The demand remains constant

• The supply decreases

When the price of coffee increases, the demand for tea (a substitute) is likely to _________

• Increase

• Decrease

• Stay the same

• Fluctuate randomly

If the price of smartphones falls, what is likely to happen to the demand for mobile apps (a complementary good)?

• Increase

• Decrease

• No Change

• Change Randomly

What happens to the demand for bread when the price of butter (a complement) increases?

• Increase

• Decrease

• No Change

• Change Randomly

If the price of cars increases, what happens to the demand for gasoline (a complementary good)?

• Increase

• Decrease

• No Change

• Change Randomly

Which factor would cause a rightward shift in the demand for Coca-Cola?

• A decrease in the price of Pepsi

• A decrease in the price of Coca-Cola

• An increase in the price of Pepsi

• An increase in the price of Coca-Cola

Complementary goods are ______________

• Products that are used together

• Products that can replace each other

• Products that are identical

• Products that are unrelated

When the price of chicken increases, what is likely to happen to the demand for beef (a substitute)?

• Increase

• Decrease

• Stay the same

• Change Randomly