Econ 2

When the price of printers goes down and the demand for printer ink goes up, this means printers and printer ink are:

Complements

(Figure: Demand for Apple iPhones) If there is an overall decrease in taste and preference for Apple iPhones, then the action that would take place in the model could be:

C to A

If the price of hot dogs increases, it would probably result in ________ in the demand for hot dog buns.

A decrease

"As the price of Yetis has gradually increased, customers have found Orcas to be a better deal. Consequently, Yeti sales have been decreasing, and Orca sales have been increasing." Using only the information in this quotation and assuming everything else constant, which of the following best describes this statement?

A movement along the demand curve for Yetis, and a shift in the demand curve for Orcas

(Figure: Demand for Apple iPhones) If Apple iPhones are considered a normal good and the overall income level of consumers is rising, then the action that would take place in the model could be:

A to C

(Figure: Demand for Apple iPhones) If Android Phones are a substitute for Apple iPhones and the price of Android Phones increases, then the action that would take place in the model could be:

A to C.

The law of demand states that, other things equal:

As the price decreases, the quantity demanded will increase.

(Figure: Demand for Apple iPhones) If Apple iPhones are considered a normal good and there is an expectation on the part of consumers that the prices of Apple iPhones will fall significantly in the near future, then the action that would take place in the model could be:

B to E.

An inverse relationship between price and quantity is represented by:

The demand curve

"Falling airline ticket prices have caused a sharp increase in the demand for airline tickets." Speaking precisely, and using terms as they are defined by economists, choose the statement that best describes this quotation.

The quotation is incorrect: a decrease in price causes an increase in the quantity demanded, not an increase in demand.

Given that black beans and pinto beans are substitute goods, if the price of black beans decreases substantially, there would be:

a decrease in the demand for pinto beans.

Other things constant, which of the following would NOT cause a change in the demand for sailboats?

a decrease in the price of sailboats

Which of the following factors cause a movement along the demand curve?

change in the price of the good

Over the past several years, consumer tastes for CDs have decreased. This means that the ________ for CDs has ________.

demand; decreased

If apples and pears are substitutes, an increase in the price of pears will:

increase the demand for apples.

If canoes and paddles are complements, a decrease in the price of canoes will:

increase the demand for paddles.

A shift of the demand curve for Apple iPhones would not be caused by a change in the:

price of Apple iPhones.

If peanut butter and jelly are complements, when the price of peanut butter goes up, the demand curve for jelly:

shifts to the left.