quiz 3.5

Which of the following pairs of goods are likely to be considered substitutes?

A Ford car and public transportation

A movement along the demand curve for toothpaste would be caused by

a change in the price of toothpaste.

Which of the following factors will NOT cause a shift in the demand for a good? A. A change in the market price of the good B. A change in the number of consumers C. A change in consumer incomes D. A change in tastes and preferences

A

Which of the following factors is expected to cause the demand curve for coffee to shift to the right?

A higher tax on the sale of tea, a substitute for coffee

The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in the price of a complementary product. T/F

False

When a decrease in the price for wine increases Adam's real income, Adam will buy more of all normal goods. If wine is a normal good, then Adam will buy more wine due to

income effect.

The income effect of an increase in the price of salmon

refers to the effect on a consumer's purchasing power which causes the consumer to buy less salmon, holding all other factors constant.

The market for smartwatches has begun to grow, due in part to the success of the Apple Watch. Following the successful launch of the Apple Watch in 2015, companies such as Samsung, Sony, and LG have all developed products to compete with the Apple Watch. The smartwatches introduced to compete with the Apple Watch would be considered

substitutes for the Apple Watch.

A change in all of the following variables will change the market demand for a product except

the price of the product.

A complement is a good

used in conjunction with another good.