Consumers in the Market Place

A movement along the demand curve can be caused by a change in: tastes of the consumers.the price.consumer incomes.the price of related goods.

An advertising campaign for a good that succeeds in changing consumers' tastes and preferences will _____. increase demand for a competitor's productmake the demand for the good perfectly elasticcause a movement along the demand curve for the goodshift the demand curve for the good to the right

The demand curve for a good shows: that the quantity supplied in the market increases with an increase in price.that the quantity demanded of the good is negatively related to price.the relationship between consumers' income and quantity demanded of the good.that the total utility from consuming the good falls as marginal utility increases.

A downward-sloping demand curve for beef implies that: as the price of beef falls, consumers substitute other meats for beef.as the price of beef rises, consumers may substitute other meats for beef.as the price of beef rises, consumers buy more beef because they can afford less of other meats.as the price of other meats increases, consumers will buy less beef.

Firms that practice third-degree price discrimination charge each consumer group a different price. True or False

The average income level, as measured by the per capita GDP, has increased by 28% in Country X. Which of the following is most likely to happen in the market for denims, a normal good, in Country X? The cost of producing denims will fall.Consumers will expect the price of denims to remain the same in the future. The demand for substitutes for denims will increase.The demand curve for denims will shift to the right.

The demand curve for diamond jewellery, a luxury good, will shift outwards if _____. the price of platinum jewellery, considered a substitute for diamond jewellery, fallsconsumers' incomes' fallthe price of diamond jewellery increasesa new diamond mine is discovered, leading to an increase in the supply of diamonds

The demand curve for a normal good will shift to the left if _____. consumers expect the price of the good to increase in the futurethe price of a complementary good increasesthe cost of producing the good increasesthe number of inputs used to produce the good are increased

If two goods are substitutes, the cross-price elasticity of demand between the goods lies between _____. 0 and 0.50 and ∞–0.5 and +0.5∞ and –∞

Suppose the price elasticity of demand for lager is 2 and the price of lager increases by 15 percent. The quantity demanded will change by _____. 10%15%20%30%

If income falls and the demand for hamburgers increases, this suggests that a hamburger is a(n) _____ good. inferiorsubstitutenormalcomplementary

The price elasticity of demand for a particular good is computed by calculating the ratio of the _____. percentage change in quantity demanded to the percentage change in pricechange in price to the change in demandpercentage change in price to the percentage change in quantity demandedchange in demand to the change in price

Under first-degree price discrimination, _____. consumers are charged according to the number of units they buyeach consumer is charged exactly what they are willing to pay for the goodevery consumer pays a fixed price for each unit of the goodconsumers pay a lump sum irrespective of how many units they buy

When the price of tennis racquets falls, the demand for tennis balls increase. Given this information, tennis balls and tennis racquets would be considered _____.   Veblen goodscomplementsGiffen goodssubstitutes

The following graph shows a downward-sloping demand curve for a good. Refer to the graph to answer the question.The price elasticity of demand at point B is equal to _____.   31∞0

The price elasticity of demand for product X is becoming more inelastic as many firms that produce X and consumers of X are exiting the market. The price of product X has remained more or less stable. In other words, product X is in the _____ phase of its life cycle. growthmaturitydecline introductory

Which of the following is likely to explain why the demand curve for baked beans, an inferior good, would shift to the right? A fall in the average income level of consumers in the economy. An increase in the price of white bread which is consumed with baked beans. An increase in the exports of baked beans to other countries. A restriction on imports of baked beans that increases the price.

If goods J and K are substitutes, an increase in the price of J causes: K's demand curve to shift to the right.the demand curve for K to shift towards the origin.the demand curves for both J and K to shift to the left.the demand for J to increase.

If the price of a good increases by 20% and the quantity demanded of its complement falls by 18%, the cross-price elasticity for the two goods is _____. 11.10.92

When the demand for a good increases:less of the good is bought at each price.more of the good is bought at each price.buyers move downward along the demand curve.buyers move upward along the demand curve.

The Law of Demand states that, ceteris paribus, as the price of a product falls, more will be demanded.The LAW OF DEMAND states that: There is an inverse relationship between price and quantity.As the price of a good or service increases , then ceteris  paribus , the quantity demanded of that good or service will fall .Or if there is a decrease in the price of a good or service, then ceteris paribus, there will be a increase in the quantity demandedPrice elasticity of demand (PED)Whether there...

Movements along the demand curveMovements along the demand curve are caused ONLY BY CHANGES IN THE PRICE of a good.Contraction of Demand When the quantity demanded for a good falls because its  price rises; it is shown by a movement up the demand curve.Extension of Demand When the quantity for a good increases because its price  falls; it is shown by a movement down the demand curve.Shifts of the demand curveA demand curve shifts to the right when there is an increase in the amount demanded at...

Demand is defined as the quantity of goods and service that  consumers are willing and able to buy at any given price over a period of timeNOTE: Demand is not the same as ‘want’ --> ‘wanting’ a  product (e.g., a thousand scoops of ice cream) which cannot be afforded is not demand --> demand is backed by the ability to pay for the good or service.