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- Explain all the reasons why a decrease in a products price would lead to an increase in purchases.9. When the price of the pen is negatively related to the quantity demanded of paper: pen and paper are a. Inferior goods b. Normal goods c. Complementary goods d. Substitute goodsMr. Burns buys only lobster and chicken. Lobsteris a normal good, while chicken is an inferior good.When the price of lobster rises, Mr. Burns buysa. less of both goods.b. more lobster and less chicken.c. less lobster and more chicken.d. less lobster, but the impact on chicken isambiguous.
- Choose the right answer: 1. In drawing an individual’s demand curve for a commodity, all but which one of the following are kept constant? a, The individual’s money income, b, The prices of other commodities, c, The price of the commodity under consideration, d, The tastes of the individuals. 2. A fall in the price of a commodity, holding everything else constant, results in and is referred to as: a, an increase in demand, b, a decrease in demand, c,an increase in the quantity demanded, d, a decrease in the quantity demanded. 3. When anindividual’s income rises, while everything else remains the same), that person’s demand fora normal good: a, rises, b, falls, c, remains the same, d,any of the above. 4. When an individual’s income falls, while everything else remains the same, that person’s demandfor an inferior good: a, increases, b, decreases, c,remains unchanged, d, we cannot say without additional information.2. The demand for good X is given by:d= 6,000 - 0.5Px - Py +9Pz + 0.1MQxResearch shows that the prices of related goods are given by Py = $6,500 and Pz = $100, while theaverage income of individuals consuming this product is M = $70,000.a. Indicate whether goods Y and Z are substitutes or complements for good X.b. Is X an inferior or normal good?c. How many units of good X will be purchased when Px = $5,230?d. Determine the demand function and inverse demand function for good X. Graph the demand curve forgood X.suppose the price of an item icreases by 10% that the quanity supplied of that same item decreases by 2%. what does the value tell you about the good in question?
- 2 - Suppose that Omer's income is OR 4800. His demand for books ( good X ) and shoos ( good Y ) depends upon the prices for these two goods , if the price of one unit of book ( good X ) is OR 40 and the price of one unit of shoos ( good Y ) is OR 20 . a ) Draw the budget line for Omar ( show your work ) b ) Find the slope of this budget line .according to jhon helly need answerother answer will be downvotedQ. 9. Explain the effects of change in the prices of 'related goods' on demand for good X.Mutton and chicken are substitute. If the priceof mutton increase the demand of chickenwillSelect one:Oa. IncreaseO b. No changeOc. DecreaseO d. Shift inward
- 1. substitution and income effects and law of demand, 2. price of related products and the demand 3. changes in expected future prices and the demand 4. changes in income population, or preferences take examples1. Discuss fully the effect of each of the following to a couple’s demand for children and other goods. Answer at ceteris paribus. a. Increase in a couple’s income b. Increase in the net price of childrenIf a 10% decrease in the price of one product thatyou buy causes an 8% increase in quantity demandedof that product, will another 10% decrease in the pricecause another 8% increase (no more and no less) inquantity demanded?