Demand Quiz

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

• The number of people who purchase olives decreases.

• Consumer income decreases, and olives are a normal good.

• The price of pickles decreases, and pickles are a substitute for olives.

• The price of olives rises.

If the law of demand applies to this good, then Q1 could be.

• 80

• 150

• 200

• 210

If Dontrell expects to earn a higher income next month, he may choose to

• save more now and spend less of his current income on goods and services.

• save less now and spend more of his current income on goods and services.

• decrease his current demand for goods and services.

• move along his current demand curves for goods and services.

A likely example of complementary goods for most people would be

• iced tea and lemonade

• lawnmowers and automobiles

• chips and salsa

• cola and lemonade

If these are the only two consumers in the market, then the market quantity demanded at a price of $15 is

• 0 units.

• 2 units.

• 8 units.

• 22 units.

Currently you purchase ten frozen pizzas per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are

• a substitute good.

• a normal good.

• an inferior good.

• a complementary good.

Nora notices that when the price of coffee (good X) decreases, she buys less tea (good Y). This implies that coffee and tea are

• complementary goods.

• normal goods.

• inferior goods.

• substitute goods.

Refer to Figure 4-1. The movement from point A to point B on the graph shows

• a. a decrease in demand.

• b. an increase in demand.

• c. a decrease in quantity demanded.

• d. an increase in quantity demanded.

The shift from Db to Da in the market for potato chips could be caused by:

• a decrease in the price of potato chips.

• a decrease in income, assuming that potato chips are a normal good.

• an announcement by the FDA that potato chips lower cholesterol.

• an increase in the price of chex mix.

Refer to Figure 4-1. The movement from point A to point B on the graph is caused by:

• an increase in price.

• a decrease in price.

• a decrease in the price of a substitute good.

• an increase in income.