Answered: Q.1.6 When an individual’s income…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter8: Understanding Markets And Industry Changes

Section: Chapter Questions

Problem 3MC

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Q.1.6 When an individual’s income rises, ceteris paribus, his/her demand for a loaf of
bread, a normal good:
(a) Rises.
(b) Falls.
(c) Remains unchanged.
(d) Becomes more positive.
Q.1.7 If there is a strike in the milk production industry, then, ceteris paribus;
(a) the demand for milk will increase.
(b) the demand for milk will decrease.
(c) the supply of milk will decrease.
(d) the supply of milk will increase.
Q.1.8 An increase in demand:
(a) indicates that more is demanded at higher prices.
(b) indicates that more is demanded at lower prices.
(c) is illustrated by a rightward shift of the demand curve.
(d) is illustrated by a leftward shift of the demand curve.

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