Econ

Imagine that the table on the right shows the quantity demanded of UGG boots at five different prices in 2016 and in 2017. Which of the following variables could cause the demand for UGG boots to change as indicated from 2016 to​ 2017? ​(Check all that​ apply.) A. Upper A decreaseA decrease in the number of buyersthe number of buyers. B. An increaseAn increase in the price of UGG boots. C. The expectation that UGG boots will riserise in price. D. Upper A decreaseA decrease in the price of a substitutesubstitute good.

A, D

The law of demand is the assertion that A. the quantity demanded of a product is inversely related to its price. Your answer is correct.B. the quantity demanded of a product is directly related to its price. C. the demand for a product is negatively related to its price. D. changes in price and changes in quantity demanded move in the same direction.

A. the quantity demanded of a product is inversely related to its price.

The U.S. economy enters a period of rapid growthrapid growth in incomes. This will cause A. demand for​ McDonald's Big Mac hamburgers to shift to the leftshift to the left if they are inferior goods. B. demand for​ McDonald's Big Mac hamburgers to shift to the rightshift to the right if they are inferior goods. C. a movement along the demand curve for​ McDonald's Big Mac hamburgers if they are normal goods.

a

The price of Burger​ King's Whopper hamburger declinesdeclines. This will cause A. demand for​ McDonald's Big Mac hamburgers to decrease B. demand for​ McDonald's Big Mac hamburgers to increaseincrease. C. a movement along the demand curve for​ McDonald's Big Mac hamburgers.

a

KFC lowers the price of a bucket of fried chickenKFC lowers the price of a bucket of fried chicken. This will A. shift the demand for McDonald's Big Mac hamburgers to the rightshift the demand for McDonald's Big Mac hamburgers to the right. B. shift the demand for McDonald's Big Mac hamburgers to the leftshift the demand for McDonald's Big Mac hamburgers to the left. .C. cause a movement along the demand curve for​ McDonald's Big Mac hamburgers

b

​McDonald's eliminateseliminates ​$1.00 off coupons. This will cause A. demand for​ McDonald's Big Mac hamburgers to shift to the leftshift to the left. B. demand for​ McDonald's Big Mac hamburgers to shift to the rightshift to the right. C. a movement along the demand curve for​ McDonald's Big Mac hamburgers.

c

An increase in the price of a product causes a decrease in quantity demanded because of the income and substitution effects. More​ specifically, A. the substitution effect is the decrease in quantity demanded because consumer tastes have changed and the income effect is the decrease in quantity demanded because consumer incomes have fallen. B. the substitution effect is the decrease in quantity demanded because the product is more expensive relative to other goods and the income effect is the decrease in quantity demanded owing to the decline in​ consumers' purchasing power. Your answer is correct.C. the substitution effect is the decrease in quantity demanded because the​ consumers' purchasing power is reduced and the income effect is the decrease in quantity demanded owing to the fact that the product is more expensive relative to other goods. D. the substitution effect is the decrease in quantity demanded because there are fewer consumers and the income effect is the decrease in quantity demanded because consumer incomes failed to increase.

B. the substitution effect is the decrease in quantity demanded because the product is more expensive relative to other goods and the income effect is the decrease in quantity demanded owing to the decline in​ consumers' purchasing power.