Ch 3 Econ Practice

The diagram represents a

• increase in demand
• decrease in demand

Which concept of demand does the graph represent?

• Decrease in price

• Decrease in demand

• Demand curve shift

• Decrease in quantity demanded

what could cause the shift shown in the graph?

• an increase in the number of buyers of a good

• people don't like good X as much as they did before

• the increase to a complement good related to good X

• an increase of good X if its an inferior good

Which of the following changes could this graph represent?

• People do not like hats as much as they did before, so their demand has decreased

• People do not like hats as much as they did before, resulting in an increase in the quantity demanded for hats

• People like hats more than they did before, and their demand for hats has increased

• There has been a decrease in the price of hats, resulting in an increase in the quantity demanded for hats

Which of the two following movements in this graph would represent an increase in quantity demanded but not a change in demand?

• From point S to point U

• From point U to point T

• From point R to point U

• From point S to point R

Which of the following two goods is more likely to be inelastically demanded?

• Demand for Exxon gasoline at the corner of 7th and Grand

• Demand for gasoline in the entire city

Which of the following two goods is more likely to be inelastically demanded?

• Demand for tangerines

• Demand for fruit

How does elasticity affect potential revenue for a firm?

• If demand for a good is inelastic, lowering the price could raise revenue.

• If demand for a good is inelastic, raising the price could reduce revenue.

• If demand for a good is elastic, raising the price must increase revenue.

• If demand for a good is elastic, raising the price could reduce revenue.

Which of the following is an example of inelastic demand?

• Jason wants the most expensive cellphone. He decides to get a cheaper model.

• Priya wants to go to the season-opening game. Tickets to another game cost less, but she still buys tickets for the opener.

• Tianna wants to try out a new, expensive restaurant. She goes to another restaurant whose food is excellent and costs less.

• Shawn wants to buy a house in one neighborhood. But after searching, he decides to buy a house elsewhere instead.

On a demand graph price is ALWAYS on which axis?

• x

• y

• z

• f