Econ 102 Ch. 3

The law of demand implies that if nothing else changes, there is

a negative relationship between the price of a good and the quantity demanded

When peoples income increases the demand for a good increases, the good is called

a normal good

The law of demand implies that other things remaining the same

as the price of a cheeseburger rises, the quantity of cheeseburgers demands will decrease

A decrease in the price of bowling shifts the

demand curve for bowling balls rightward

The price of a DVD rental is $2.50 and the price of a download movie is $1.00. If the price of the DVD rental falls by .50 the relative price of a downloaded movie will

rise

The law of demand states that the quantity of a good demanded varies

inversely with its price

The opportunity cost of good A in terms of good B is equal to the

ratio of the money price of good A to the money of price good B

If the price of a hot dog is $2 and the price of a hamburger is $4 then the

relative price of a hot dog is 1/2 hamburger

When graphing a demand curve for corn we are showing the relationship between the quantity demanded of corn and the

relative price of corn

An increase in the number of consumers

shifts the demand curve rightward

Relative price is

the ratio of one price to another price

The opportunity cost of a hot dog in terms of hamburgers is the

the ratio of the money price of a hot dog to the money price of a hamburger

The price of a DVD rental is $1.50 and the price of a download is $1.00. If the price of a DVD rental increases by .50, the relative price a download movie

falls

If consumers but bot producers expect that the price of soda will rise in November, the

demand for soda in October will increase