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If price is on the vertical axis and quantity demanded is on the horizontal axis, why is a

If price is on the vertical axis and quantity demanded is on the horizontal axis, why is a demand curve downward sloping (left to right)?

a.Because a demand curve is the graphical representation of the law of demand, which specifies an inverse relationship between price and supply, ceteris paribus.

b.Because a demand curve is the graphical representation of the law of demand, which specifies a direct relationship between price and quantity supplied, ceteris paribus.

c.Because a demand curve is the graphical representation of the law of demand, which specifies an inverse relationship between price and demand, ceteris paribus.

d.Because a demand curve is the graphical representation of the law of demand, which specifies a direct relationship between price and demand, ceteris paribus.

e.Because a demand curve is the graphical representation of the law of demand, which specifies an inverse relationship between price and quantity demanded, ceteris paribus.

 

 

 

114.In the market for good X there are three buyers, Adam, Bill, and Carolyn. Adam buys 3 units of good X at $4, Bill buys 7 units of good X at $4, and Carolyn buys 8 units of good X at $4. A point on the market demand curve consists of the following price-quantity combination:

a.$4, 10

b.$4, 18

c.$4, 15

d.$5, 8

e.none of the above

 

 

 

115.Which of the following statements is true?

a.To an economist, demand is different from quantity demanded.

b.A demand schedule is the numerical tabulation of the law of demand.

c.A demand curve is the graphical representation of the direct relationship between price and quantity demanded.

d.a and b

e.a, b, and c

 

 

 

116.Consider a point on a market demand curve. The point represents

a.a single price and the quantity demanded by an individual buyer.

b.a single price and the sum of the quantities demanded by all buyers.

c.various prices and various quantities demanded.

d.a single price and the quantity demanded by an individual buyer at that price and all other prices.

e.a and c

 

 

 

117.If the demand for computer software rises as incomes rise, then computer software is a (an)

a.inferior good

b.substitute (good) for computers

c.normal good

d.complement (good) for computers

e.c and d

 

 

 

118.There are two universities, A and B, in a city. Tuition rises at University A and, as a result, the demand for attending University B rises. It follows that educational services at the two universities are

a.complements.

b.normal goods.

c.inferior goods.

d.substitutes.

e.none of the above

 

 

 

119.Which of the following statements is false?

a.The shift factors for the supply curve are: income, preferences, prices of related goods, the number of buyers, and expectations of future price.

b.A change in (own) price changes the quantity supplied of a good.

c.A change in demand is graphically represented by a shift in the demand curve.

d.A change in quantity demanded is represented by a movement along a given demand curve.

 

 

 

120.If potential buyers of good X expect the price of good X will soon fall, then the current

a.demand for good X will rise.

b.demand for good X will remain unchanged.

c.demand for good X will fall.

d.quantity demanded of good X will fall.

e.quantity demanded of good X will rise.

 

 

 

121.Which of the following statements represents a correct and sequentially accurate economic explanation?

a.X and Y are substitutes. The price of X falls, the quantity demanded of X rises, and the demand for Y rises.

b.X and Y are substitutes. The price of X rises, the demand for X falls, and the demand for Y rises.

c.X and Y are substitutes. The price of X falls, the demand for X rises, and the quantity demanded of Y rises.

d.X and Y are substitutes. The price of X falls, the quantity demanded of X rises, and the demand for Y falls.

e.X and Y are complements. The price of X falls, the quantity demanded of X rises, and the demand for Y falls.

 

 

 

122.Which of the following statements represents a correct and sequentially accurate economic explanation?

a.X is an inferior good and Y is a substitute for X. Income rises, the demand for X falls, the price of X falls, and the demand for Y rises.

b.X is an inferior good and Y is a substitute for X. Income rises, the demand for X falls, the price of X falls, and the demand for Y falls.

c.X is an inferior good and Y is a substitute for X. Income falls, the demand for X rises, the price of X rises, and the demand for Y falls.

d.X is an inferior good and Y is a substitute for X. Income rises, the quantity demanded of X rises, the price of X rises, and the demand for Y falls.

e.none of the above

Dec 09 2019 Read more Less More

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