Macro-Demand Side Questions

According to a recent study, "Stricter college alcohol policies, such as raising the price of alcohol, or banning alcohol on campus, decrease the number of students who use marijuana." On the basis of this information, how would you describe alcohol and marijuana?

The two goods are complements in consumption.

If, in response to an increase in the price of pineapples, the quantity demanded of pineapples decreases, economists would describe this as

a decrease in quantity demanded.

The phrase "demand has increased" means that

a demand curve has shifted to the right.

If an increase in income leads to in an increase in the demand for sushi, then sushi is

a normal good

If, in response to a decrease in the price of coffee, the quantity demanded of coffee increases, economists would describe this as

an increase in quantity demanded.

The market for smartphones has become very competitive. The increase in competition in this market is an example of how the market responds to

changes in consumer tastes

A change in which variable will change the market demand for a product?

expected future prices

Suppose that when the price of hamburgers increases, the Ruiz family increases their purchases of hot dogs. To the Ruiz family

hamburgers and hot dogs are substitutes.

The ________ effect of a price change refers to the impact of a change in the price of a good on a consumer's purchasing power.

income

An ________ is represented by a rightward shift of the demand curve while an ________ is represented by a movement along a given demand curve.

increase in demand; increase in quantity demanded

The income effect of a price change results in a

movement along the demand curve due to a change in purchasing power brought about by the price change.

The substitution effect of a price change refers to

the change in quantity demanded that results from a change in price making a good more or less expensive relative to other goods that are substitutes

If the price of smartphones was to increase, then

the demand for smartphone apps would decrease.

If you are considering buying either an Apple iPhone or a Samsung Galaxy, and you choose the Samsung only because the price is lower, then you consider

the iPhone and the Galaxy to be substitutes