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# The law of demand states that price and quantity demanded are a.directly related, ceteris

The law of demand states that price and quantity demanded are

a.directly related, ceteris paribus.

b.inversely related, ceteris paribus.

c.independent.

d.positively related, ceteris paribus.

2.Which of the following illustrates the law of demand?

a.Jorge buys fewer pencils at \$2 per pencil than at \$1 per pencil, ceteris paribus.

b.Chen buys more ice cream at \$4 per half-gallon than at \$3 per half gallon, ceteris paribus.

c.Karissa buys fewer sweaters at \$50 each than at \$35 each, ceteris paribus.

d.a, b, and c

e.a and c

3.At a price of \$15 each, Marta buys 4 books per month. When the price increases to \$20, Marta buys 3 books per month. Luz says that Marta&#39;s demand for books has decreased. Is Luz correct?

a.Yes, Luz is correct.

b.No, Luz is incorrect. Marta&#39;s demand has increased.

c.No, Luz is incorrect. Marta&#39;s quantity demanded has decreased, but her demand has stayed the same.

d.No, Luz is incorrect. Marta&#39;s quantity demanded has increased, but her demand has stayed the same.

e.No, Luz is incorrect. Marta&#39;s quantity demanded has decreased and her demand has increased.

4.One major reason for the law of demand is that

a.one price changing requires at least one other price to change in the opposite direction.

b.people substitute relatively lower-priced goods for relatively higher-priced goods.

c.a higher price never reduces quantity demanded by enough to lower total revenue.

d.people are willing to produce more units at a higher price.

5.A demand schedule is a numerical tabulation of

a.prices and quantities supplied.

b.costs and quantities demanded.

c.prices and quantities demanded.

d.incomes and quantities demanded.

6.If Max&#39;s demand for hot dogs falls as his income rises, then for Max hot dogs are

b.an inferior good.

c.a preferential good.

d.a normal good.

e.a neutral good.

7.An increase in the number of buyers in a particular market will result in a

a.movement up the demand curve.

b.movement down the demand curve.

c.leftward shift in the demand curve.

d.rightward shift in the demand curve.

8.If the demand curve for a good shifts leftward,

a.quantity demanded is less at each price.

b.quantity demanded remains constant at each price.

c.quantity demanded is greater at each price.

d.demand is greater at each price.

9.If people begin to favor science fiction novels to a greater degree than previously, the demand curve for science fiction novels

a.shifts rightward.

b.shifts leftward.

c.stays constant.

d.can shift either rightward or leftward.

10.As the price of good X rises, the demand for good Y falls. Therefore, goods X and Y are

a.substitutes.

b.normal goods.

c.complements.

d.inferior goods.

e.none of the above

Dec 09 2019 View more View Less