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- 1. Multiple Choice
What is the income effect?
When the IRS takes more of your money when you make more.
When consumers can buy more if their income goes up.
When the amount of money you earn increases.
- 2. Multiple Choice
Which is an example of the substitution effect?
When the price of one item goes up, so the price of another goes up with it
When the price of pencils goes up, people will buy pens instead
When someone decides something is popular, they buy more of it.
- 3. Multiple Choice
Which of the following cause a change in demand? (you can pick more than one)
Consumer Income
Consumer Tastes
Number of consumers
- 4. Multiple ChoiceWhat is a market demand curve?table showing how much of a product an individual is willing to paytable showing how much of a product a market is willing to buygraph showing how much of a product an individual is willing to buygraph showing how much of a product an market is willing to buy
- 5. Multiple ChoiceSkiers flock to a town in the Rockies in January, and restaurant business booms. What factor is affecting demand?incomemarket sizeconsumer tastesubstitutes
- 6. Multiple Choice
The main reason individuals consume goods and services is:
To increase demand
To increase personal satisfaction
To drive the economy
None of these
- 7. Multiple ChoiceJennifer Lopez is seen wearing a new short and sleek dress. People now want this dress. Which demand determinant is this most likely to fall under?Change in Consumer IncomeChange in Consumer TastesChange in Price of Substitute GoodChange in Consumer Price Expectations
- 8. Multiple ChoiceOreo cookies are now extremely expensive to purchase. Instead of buying Oreo cookies, I now want to buy Chips Ahoy. What determinant of demand does this likely fall under?Change in Price of Complementary GoodChange in Price of Substitute GoodChange in Consumer Price ExpectationsChange in Number of Consumers in the Market
- 9. Multiple ChoiceThe government is giving every individual 18 and above an extra $1,000.00 this year. What determinant of demand does this likely fall under?Change in Consumer TastesChange in Consumer Price ExpectationsChange in Number of Consumers in the MarketChange in Consumer Income
- 10. Multiple ChoiceI know that the iPhone 8 is coming out next year but really need a phone badly. I'm thinking about buying an iPhone 7 when the new iPhone comes to the market because it will be much cheaper than today's price. What determinant of demand does this suggest?Change in Price of Complementary GoodChange in Consumer Price ExpectationsChange in Number of Consumers in the MarketChange in Consumer Income
- 11. Multiple ChoiceMcDonald's is having a special on their Big Mac purchases this week. Every Big Mac is $3 cheaper! When burger prices go down, this means you can buy more fries and a drink. What demand factor does this relate to?Change in Consumer TastesChange in Price of Substitute GoodChange in Price of Complementary GoodChange in Number of Consumers in the Market
- 12. Multiple ChoicePorterville, California is now a major immigration center for Russians. Over 10,000 Russians are living in Porterville now! What demand does this determine?Change in Consumer IncomeChange in Consumer TastesChange in Consumer Price ExpectationsChange in Number of Consumers in the Market
- 13. Multiple ChoiceIf there is an increase in demand, the line will shift to therightleftbottomup
- 14. Multiple ChoiceIf there is a decrease in demand, the graph will shift to therightleftupdown
- 15. Multiple ChoiceWhat is demand?The desire to own something and the ability to afford it.A graph that shows the quantity demanded at every price.The usefulness of a product expressed in a dollar sign.
- 16. Multiple ChoiceWhich of the following best describes the Law of Demand?As price goes down, demand goes down. (and vice versa).As price goes down, demand goes up (and vice versa).As demand goes down, supply goes up.As demand goes up, price becomes elastic.
- 17. Multiple ChoiceA change in quantity demanded is shownat various points on the demand curvewith a new demand curve drawn above or below the original demand curvewith a vertical line
- 18. Multiple ChoiceGoods that are bought and used together arecomplementary goodssubstitute goodsincome goodsunrelated goods
- 19. Multiple Choice
The diagram represents aincrease in demanddecrease in demand - 20. Multiple ChoiceA new study has shown that avocados are extremely healthy. The demand for avocados has increased due to a change inmarket sizeprice of a substitute goodprice of a complementary goodtastes and preferences
- 21. Multiple ChoiceIceberg & romaine are two different types of lettuce. For most consumers, iceberg and romaine arecomplementssubstitutesinferior goodsresources
- 22. Multiple ChoiceIf Mary used to buy 10 units at $4 each and now buys 15 units when the price is $4, herquantity demanded has increasedquantity demanded has decreaseddemand has increaseddemand has decreased
- 23. Multiple ChoiceWhen the price of Nike soccer balls fell, Ronaldo purchased more Nike soccer balls, and fewer Adidas soccer balls. Which of the following best explains Ronaldo's decision to buy more Nike soccer balls?the substitution effectthe income effectan increase in the demand for Nike soccer ballsthe price effect
- 24. Multiple ChoiceThe diagram represents aincrease in demanddecrease in demand
- 25. Multiple ChoiceWhat factor could have caused the demand to decrease?incomes increasedexpectation that prices will increasea decrease in the price of a substituteincrease in market size
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