Econ Exam 1

the law of demand implies that demand curves

a. slope down.

if the price of an xbox player falls, then the market for xbox games

a. the demand curve for xbox games shifts rightward

People buy more of good 1 when the price of good 2 rises. These goods are

b. substitutes

the "law of demand" predicts that, other things being equal,

c. an increase in the price of pizza decreases the price of pizza demanded.

the law of demand states that, other things remaining the same, the higher the price of a good, the

c. smaller is the quantity of a good demanded

the quantity demanded is

c. the amount of a good that consumers plan to purchase at a particular price

consumers expect that the price of a gallon of gasoline will rise next week. as a result,

today's demand for gasoline increases

Ham and eggs are complements. If the price of ham rises, the demand for eggs will

d. decrease and the demand curve for eggs will shift leftward.

Sweatshirts and tee-shirts are complements in consumption and the price of a sweatshirt increases. As a result, the demand for

d. tee-shirts will decrease, that is, the demand curve will shift leftward

the demand curve for a normal good shifts leftward if income ______ or the expected future price _______.

decreases, falls