Steve went to his favorite hamburger restaurant with $3, expecting to buy a $2 hamburger and a $1 soda. When he arrived he discovered that hamburgers were on sale for $1, so Steve bought two hamburgers and a soda. Steve’s response to the decrease in the price of hamburgers is best explained by: |
the income effect |
In the past few years, the demand for donuts has greatly increased. This increase in demand might best be explained by |
a change in buyer’s taste |
Which of the following will not cause the demand for product K to change? |
C |
If the price of product L increases, the demand curve for close-substitute product J will: |
shift to the right |
A shift to the right in the demand curve for product A can be most reasonably explained by saying that: |
consumer preferences have changed in favor of A so that they now want to buy more at each possible price |
Which of the following will cause the demand curve for product A to shift to the left? |
D |
If Z is an inferior good, an increase in money income will shift the: |
demand curve to the left |
If the demand for steak (a normal good) shifts to the left, the most likely reason is that: |
consumer incomes have fallen |
If products A and B are complements and the price of B decreases the: |
demand for A will increase and the quantity demanded of B will increase |
An improvement in production technology will: |
shift the supply curve to the right |
Macro Ch.3 Quiz
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