ECON CH.3
Other things constant, a ________ in price will ________ the ________ for a good.
decrease; increase; quantity demanded
If the college athletic department raises the price of football tickets from $6 to $8 and sells more tickets at $8 than it had sold the year before at $6, we could reasonably conclude the demand for football tickets
had increased.
According to the "law of demand"
people will purchase less of a good when its price rises.
If the university administration plans to hike tuition charges in the hope of increasing tuition revenues, we know
they are assuming an inelastic demand.
A "normal good" is defined as any good in which
a fall in income will reduce overall demand.
Rebecca goes to the hairdresser more often now that her salary has increased. For Rebecca, the hairdresser's service is probably ________.
a normal good
Suppose hamburgers and hotdogs are substitute goods. Other things constant, a rise in the price of hotdogs would tend to
increase the demand for hamburgers.
A universal health insurance program, which lowers patient's out-of-pocket expenses, would tend to
increase the non-monetary costs of medical care, such as waiting longer in line.
If quantity demanded increases at all possible prices, demand has
increased
Other things constant, ________ people will seek medical care when the price/cost of a doctor's visit ________.
more; falls
According to physicians, people should drink eight full glasses of water per day to maintain optimal health; it is now common knowledge. But people don't necessarily follow doctor's orders because
people value other goods in addition to optimal health.
Skis and snowboards are close substitute goods. Fill in the blanks: A ________ in the price of snowboards would tend to ________ the demand for ________.
rise; increase; skis
Suppose the price of home heating oil is unchanged, yet we observe people purchasing 20% more than a year ago. Then
the demand for home heating oil has decreased.
If movie theaters began collecting more gross income from ticket sales after lowering ticket prices, we would know
the demand for movie tickets was elastic.
Paint and paintbrushes are complements. If the price of paint increases, then
the demand for paintbrushes will decrease.