Which of the following would cause a normal good’s demand curve to shift to the left?

11.    Which of the following would cause a normal good’s demand curve to shift to the left?
a.    Income decreases.
b.    Income increases.
c.    The price increases.
d.    The price decreases.
e.    The input prices increase.


ANS:    A    DIF:    Medium    REF:    Shifts in the Demand Curve
TOP:    II.B.1.a.    MSC:    Understanding       

    12.    Something is an inferior good if the demand for the good:
a.    increases as the consumer’s income increases.
b.    increases as the consumer’s income decreases.
c.    decreases as the price of a complement increases.
d.    decreases as the price of a substitute increases.
e.    decreases as the consumer’s income decreases.


ANS:    B    DIF:    Easy    REF:    Shifts in the Demand Curve
TOP:    II.B.1.b.    MSC:    Remembering       

    13.    Which of the following would cause the demand curve to shift to the right?
a.    Income decreases for an inferior good.
b.    Income decreases for a normal good.
c.    Tastes and preferences decrease.
d.    The price of a substitute decreases.
e.    The price of a complement increases.


ANS:    A    DIF:    Medium    REF:    Shifts in the Demand Curve
TOP:    II.B.1.b.    MSC:    Understanding       

    14.    Two goods that are used together are called:
a.    complements.
b.    inferior.
c.    Giffin.
d.    substitutes.
e.    normal.


ANS:    A    DIF:    Easy    REF:    Shifts in the Demand Curve
TOP:    II.B.2.a.    MSC:    Remembering       

    15.    The price of good X increases by 25%, causing the quantity consumed of good Y to decrease by 10%. If everything else is held constant in the economy, we can say with certainty that good X and good Y are:
a.    substitutes.
b.    inferior.
c.    complements.
d.    normal.
e.    unrelated.


ANS:    C    DIF:    Medium    REF:    Shifts in the Demand Curve
TOP:    II.B.2.a.    MSC:    Applying

    16.    If the price of a good increases, holding all else constant,
a.    the demand for all of that good’s substitutes will decrease.
b.    the quantity demanded for that good will increase.
c.    the demand for all of that good’s complements will increase.
d.    the demand for all of that good’s substitutes will increase.
e.    the demand curve will shift to the left.


ANS:    D    DIF:    Medium    REF:    Shifts in the Demand Curve
TOP:    II.B.2.b.    MSC:    Remembering       

    17.    Pepsi and Coke are considered substitute goods. Because of this, one would predict that, holding all else constant, if the price of Pepsi increases, we would see:
a.    the demand curve for Coke shift to the right.
b.    the demand curve for Coke shift to the left.
c.    no change in the demand for Coke.
d.    the demand curve for Pepsi shift to the right.
e.    the demand curve for Pepsi shift to the left.


ANS:    A    DIF:    Medium    REF:    Shifts in the Demand Curve
TOP:    II.B.2.b.    MSC:    Applying

    18.    Companies use advertising to shift consumer demand. Which of the following demand shifters do you think advertisers most often rely on?
a.    changes in income
b.    the price of related goods
c.    changes in tastes and preferences
d.    the number of buyers
e.    expectations regarding the future price


ANS:    C    DIF:    Medium    REF:    Shifts in the Demand Curve
TOP:    II.B.3.    MSC:    Understanding       

    19.    Which of the following will cause the demand curve for burgers to shift to the right?
a.    The price of burgers decreases.
b.    The price of burgers increases.
c.    The price of burger buns increases.
d.    A study is published by the National Association for Burger Research that says eating burgers can reduce the risk for bad acne.
e.    The price of steak decreases.


ANS:    D    DIF:    Medium    REF:    Shifts in the Demand Curve
TOP:    II.B.3.    MSC:    Applying

    20.    Consider the following demand schedules for New York Mets T-shirts:
 
Holding all else constant, which of the following demand schedules is most likely to represent 

New York Mets T-shirts if they win the World Series?    

Answer

 

Thank you!