Ch 3 HW

The relative price of a Wii game in terms of textbooks is ___ textbooks.

.5

If the money price of a cup of coffee is​ $1 and the money price of gum is 50 cents per​ pack, then the relative price of coffee in terms of gum is​ _____. A. 2 packs per cup B. ​$1 per cup C. 50 cents per pack D. ​1/2 cup per pack

A. 2 packs per cup

Which of the following statements by Aqua Springs demonstrates that the​ firm's selling plans obey the law of supply​? A. If the price of bottled water falls and all the other influences on our selling plans remain the​ same, we will cut back on production and lay off some workers B. ​We've been hit by a rise in the price of plastic bottles and will lower production. C. At a price of​ $1 bottle, we plan to sell​ 2,000 bottles per day. D. We can easily decrease the production of plain water and increase the production of sparking water.

A. If the price of bottled water falls and all the other influences on our selling plans remain the​ same, we will cut back on production and lay off some workers

​Low-fat milk and cream are​ _______. A. complements in production for a dairy and substititues for consumers B. complements for consumers but not complements for a dairy farmer C. substitutes for consumers and substitutes for a dairy farmer D. substitutes in production for a dairy and complements for consumers

A. complements in production for a dairy and substititues for consumers

A demand curve shows the relation between the​ _____ and​ _____ when all other influences on buying plans remain the same. A. quantity demanded of a​ good; its price B. quantity actually​ bought; the quantity demanded C. demand​ for; its price D. quantity demanded​ of; its cost

A. quantity demanded of a​ good; its price

The money price of a textbook is​ $90 and the money price of the Wii game Super Mario Galaxy is​ $45. What is the opportunity cost of a textbook in terms of the Wii​ game? What is the relative price of the Wii game in terms of​ textbooks? The opportunity cost of a textbook in terms of Wii games is​ ______. A. the number of Wii games you must give up to get the textbook B. ​$90 C. ​$45 D. the numbers of hours you must work to be able to afford to buy the textbook

A. the number of Wii games you must give up to get the textbook

A substitute is a good that is​ _____ another​ good, and a complement is a good that is​ _____ another good. A. consumed in place​ of; produced with B. consumed in place​ of; consumed together with C. produced in place​ of; sold with D. consumed together​ with; consumed in place of

B. consumed in place​ of; consumed together with

A competitive market is a market that has​ _____, so​ _____ can influence the price. A. many buyers and one​ seller; no buyer B. many buyers and​ sellers; no single buyer or seller C. one buyer and many​ sellers; no seller D. many buyers and​ sellers; both buyers and sellers

B. many buyers and​ sellers; no single buyer or seller

The law of demand states that​ ______, the​ ______ the price of a​ good, the smaller is the quantity demanded. A. even when other factors​ change; higher B. other things remaining the​ same; higher C. other things remaining the​ same; lower D. even when other factors​ change; lower

B. other things remaining the​ same; higher

Which of the following statements is about a normal good​, which is about an inferior good​, which is about​ both, and which is about​ neither? I With incomes falling in the​ recession, people are buying more chicken. II People are buying more beef now that incomes have increased. III People are buying more chicken because the price of chicken has fallen. IV With higher incomes people are switching from chicken to beef. A. IV is​ inferior, III is​ normal, II is​ neither, and I is both B. III is​ inferior, II is​ normal, IV is​ neither, and I is both C. I is​ inferior, II is​ normal, III is​ neither, and IV is both D. II is​ inferior, I is​ normal, III is​ neither, and IV is both

C. I is​ inferior, II is​ normal, III is​ neither, and IV is both

Which of the following is an example of money price​? A. Megan earns​ $15 an hour at her job. B. The price of cashew has gone up by 4 percent. C. Joe paid​ $15 to buy a pizza box from​ McDonald's. D. Jim wants to buy a stereo player.

C. Joe paid​ $15 to buy a pizza box from​ McDonald's.

The substitution effect influences gasoline purchases because when the price of a gallon of gasoline​ rises, other things remaining the​ same, _______. Consumers​ _______. A. its relative price does not change because most likely the prices of all other goods will also rise because fuel is a productive resource in the production of all​ goods; continue to purchase​ gasoline, but in smaller quantities. B. the relative price of all vehicles​ rises; purchase fewer gas guzzlers and more​ fuel-efficient cars C. its relative price​ rises; look for alternate means of transportation D. the relative prices of all car accessories​ rises; continue to purchase​ gasoline, but in smaller quantities.

C. its relative price​ rises; look for alternate means of transportation

Diet coke and regular coke are​ _______. A. complements for producers but not complements in production for producers B. substitutes for consumers but not substitutes in production for producers C. substitutes for consumers and substitutes in production for producers D. complements for consumers and complements in production for producers

C. substitutes for consumers and substitutes in production for producers

The law of demand applies to gasoline because when the price of gasoline​ rises, ______. A. the demand for gasoline increases B. the quantity demanded increases C. the quantity demanded decreases D. the demand for gasoline decreases

C. the quantity demanded decreases

Supply is​ _____, when all other influences on buying plans remain the same. A. the relationship between the quantity supplied of a good and the cost of the inputs used to produce it B. the is the quantity of a good that producers would be willing to sell if costs were lower C. the relationship between the quantity supplied of a good and the price of the good D. the quantity of a good that producers plan to sell

C. the relationship between the quantity supplied of a good and the price of the good

The income effect influences gasoline purchases because when the price of gasoline​ rises, other things remaining the​ same, ______. Consumers​ ______. A. demand for gasoline​ decreases; buy less gasoline and more tickets for public transit B. demand for gasoline​ increases; buy more gasoline because it is a normal good C. demand for gasoline​ increases; believe that the price may rise even further so they buy more gasoline now D. the price of gasoline rises relative to​ income; cannot afford to buy all the things they previously​ bought, so they buy less gasoline

D. the price of gasoline rises relative to​ income; cannot afford to buy all the things they previously​ bought, so they buy less gasoline

Demand is​ _____, when all other influences on buying plans remain the same. A. the quantity of a good that people plan to buy B. the is the quantity of a good that people want but​ can't afford C. the relationship between the quantity demanded of a good and income D. the relationship between the quantity demanded of a good and the price of the good

D. the relationship between the quantity demanded of a good and the price of the good