MICROECONOMICS (LL)(FD)
21st Edition
ISBN: 9781260191806
Author: McConnell
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
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Question
Chapter 10.6, Problem 1QQ
To determine
Changes in price of goods.
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Students have asked these similar questions
Which of the following leads to a rightward shift of the demand curve?
Responses
A
an expectation of an increase in the good's price in the future
an expectation of an increase in the good's price in the future
B
a decrease in the number of consumers
a decrease in the number of consumers
C
a decrease in the price of a substitute
a decrease in the price of a substitute
D
an increase in the good's own price
Which of the following increases the supply of meals from KFC?
a.
Consumers' incomes increase and meals from KFC are a normal good.
b.
Consumers' incomes decrease and meals from KFC are a normal good.
c.
The price of movies, a complement to KFC meals, increases.
d.
Cashiers receive a reduction in salary
The prices of both goods rise by 20%.
For which good does Qd drop the most? Why?
For a narrowly defined good such as blue jeans, there are many substitutes (khakis, shorts, Speedos).
There are fewer substitutes available for broadly defined goods.
(There aren’t too many substitutes for clothing, other than living in a nudist colony.)
Knowledge Booster
Similar questions
- Which of the following would not cause market demand for a normal good to decline? a. An increase in the price of a substitute b. An increase in the price of a complement c. A decline in consumer income d. Consumer expectations that the good will go on sale in the near future e. An announcement by the Surgeon General that the product contributes to premature deatharrow_forwardNormal goods are those for which demand decreases asA) the price of a substitute falls. B) the price of a complement falls. C) the good's own price rises. D) income decreases.arrow_forwardWhich of the following does NOT decrease the demand for Oreos? An increase in the price of Oreos An increase in the price of milk, a complement to Oreos A decrease in the price of Chips Ahoy!, a substitute for Oreos A decrease in consumer income, assuming Oreos are a normal goodarrow_forward
- In the market for Coke, which of the following can bring about an increase in the quantity demanded of Coke? Question 14 options: a) an increase in the price of Pepsi, a substitute for Coke b) a decrease in the price of Coke c) a very effective advertising campaign by Coca-Cola d) an increase in income, assuming Coke is a normal goodarrow_forwardA decline in the price of good A causes the demand curve for good B to shift to the right. We can conclude goods A and B are: complements normal goods inferior goods substitutesarrow_forwardWhich of the following is not a factor that could cause a shift in the demand curve for a certain good? Group of answer choices an increase in the price of a complement a change in the price of that good a change in income an increase in popularity of the goodarrow_forward
- Other things equal, which of the following would NOT shift the supply curve for gasoline? Select one: a. an increase in the price of gasoline. b. an improvement in refining techniques that allows more gasoline to be squeezed out of a barrel of crude oil c. a fall in the price of crude oil (from which gasoline is refined) d. an increase in the wages paid to people working in oil refineries.arrow_forwardThe price of a widget decreases from $1 to $0.60, and in response to the price change the quantity demanded increases from 7 to 9 units. Therefore, demand for widgets in this price range: (Use the midpoint formula and write your answer in absolute terms, meaning as a positive number)arrow_forwardSuppose income increases. then Question 10 options: a) demand increases for all goods b) supply increases for all goods c) demand increases for normal goods and decreases for inferior goods d) all of the above depending upon the circumstancearrow_forward
- Q5. Demand is said to be elastic if (a) the price of the good responds substantially to changes in demand. (b) demand shifts substantially when income or the expected future price of the good changes. (c) buyers do not respond much to changes in the price of the good. (d) buyers respond substantially to changes in the price of the good. (X) No attempt Ansuorarrow_forwardThe demand for product M is NOT changed by which of the following? (Consider the Change in Demand vs Change in Quantity Demanded) Multiple Choice A change in consumer tastes A change in the price of M A change in the price of close-substitute product J An increase in consumer incomesarrow_forwardWhich of the following will not cause a good’s entire demand curve to shift? Group of answer choices: (A) A change in consumers' income. (B) A change in consumers' tastes or desires for the good. (C) A change in the availability and price of substitute goods. (D) A change in consumers' expectations. (E) A change in the current price of the good.arrow_forward
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