HW ECON 1

If Max experiences a decrease in his income, then we would expect Max's demand for

normal goods to decrease

What must be given up to obtain an item is called

opportunity cost

a likely example of substitute goods for most people would be

pencils and pens

if macaroni and cheese is an inferior good, then an increase in

a consumers income will cause the demand curve for macaroni and cheese to shift to LEFT

If toast and butter are complements, then which of the following would increase the demand for toast?

a decrease in the price of butter

If a study by medical researchers finds that eating brown rice causes weight loss while eating white rice causes weight gain, then we likely would see

an increase in demand for brown rice and a decrease in demand for white rice

a competitive market is one in which there

are so many buyers and so many sellers that each has a negligible impact on the price of the product.

which of the following statements is correct

buyers determine demand, and sellers determine supply

a higher price of batteries would result in a(n)

decrease in the demand for flashlights

an increase in the price of a good will

decrease quantity demanded

two goods are substitutes when a decrease in the price of one good

decreases the quantity demanded of the other good

a market demand curve shows

how much of a good all buyers are willing and able to buy at each possible price

normal good

if the demand for a good falls when income falls, the good is called a

inferior good

if the demand for a good rises when income falls

a movement downward and to the right along a demand curve is called

increase in quantity demanded

If coffee sold at Starbucks is a normal good, then an increase in consumers' income will:

increase the demand for Starbucks coffee

The University of Iowa was voted the #1 "party school" in America in 2013 by the Princeton Review. The University of Iowa is located in Iowa City. At the end of August each year, the market demand for beer in Iowa City:

increases

Elena loves orange juice. She reads in the newspaper that 20% of the Florida orange crop was destroyed by a late spring frost. Economists predict that the price of oranges will rise by 50 percent by the end of the year. As a result, Elena's demand for orange juice:

increases today

an increase in quantity demanded

results in a movement downward and to the right along a demand curve

production possibilities frontier (ppf) illustrates

the combination of output that an economy should produce

weather channel reports that a new hurricane will hit the state state of Florida in three days, consequently in Florida

the demand for bottled water will increase

If the price of K-cup coffee pods increases from $8 per pack to $12 per pack, then

the demand for keruig coffee maker will decrease

The city of Buffalo, NY has been losing its population for the past several years. Consequently,

the demand for new grocery stores in buffalo will decrease

a movement along the demand curve might be caused by a change in

the price of the good or service that is being demanded

the characteristics of a competitive market does NOT include

there is no free entry

compliments

two goods for which an increase in the price of one leads to a decrease in the demand for the other

the demand curve for coffee shifts

when a determinant of the demand for coffee other than the price of coffee changes.

the quantity demanded of a good is the amount that buyers are

willing and able to purchase