Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 10.6, Problem 1QQ
To determine
Changes in price of goods.
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Students have asked these similar questions
Q.3 If a product has many substitutes, which of the following statements is correct?
Select one:
a.It is likely that its cross price elasticity is close to -3.
b. It is likely that it is a normal good.
c. It is likely that its supply elasticity is low.
d. It is likely that its price elasticity of demand is very low.
e. None of the above.
A change in which of the following will not shift the demand curve for hamburgers? Price of hot dogs , price of hamburgers, price of hamburger buns or the income of hamburger consumer?

Select one:
a. a decrease in the price of 7-UP, assuming 7-UP is a substitute for Dr. Pepper
b. an increase in the price of sugar used to make Dr. Pepper
c. an increase in the price of Dr. Pepper
d. an increase in income, assuming that Dr. Pepper is a normal good
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Similar questions
- Which will not cause a change in the demand for good X? A) a change in tastes B) a change in income C) a change in the price of good X D) a change in price of complementary product for good Xarrow_forwardIf cereal is normal good, this will cause the demand for cereal to increase or decrease.arrow_forwardRefer to Figure 4-1. The movement from point A to point B on the graph is caused by a. an increase in price. b. a decrease in price. c. a decrease in the price of a substitute good.arrow_forward
- Which of the following would NOT decrease the demand for steak? A. a fall in the price of chicken (a substitute) B. a rise in the price of steak C. a rise in the price of potatoes (a complement) D. a decrease in consumer income (assume steak is a normal good) E. all of the above WILL decrease the demand for steak 10.arrow_forwardEquilibrium is achieved when quantity demanded intersect with quantity supplied. Assume aproduct “Mobile Phone” for which supply and demand shifts. You are required to prepare graphs of each situation given below?a. Increase in income: Mobile Phone is a normal good.b. Increase in income: Mobile Phone is an inferior good.c. Decrease in the price of a substitute for Mobile Phone.d. Decrease in the price of a complement for Mobile Phone.e. Increase in the cost of production of Mobile Phone.f. Decrease in the cost of production of Mobile Phone.arrow_forwardRelationship between changes in price and corresponding changes in quantity that consumers will demand isarrow_forward
- A change in which of the following alters buying plans for cars but does NOT shift the demandcurve for cars?A) a 10 percent decrease in the price of car insuranceB) a 20 percent increase in the price of a carC) a 5 percent increase in people's incomeD) an increased preference for walking rather than drivingarrow_forwardIf an increase in income results in a decrease in the quantity demanded of a good, then the good is a luxury. an inferior good. a normal good. a necessity.arrow_forwardWhat might be the reason when quantity demanded has increased at every price? a.) Income has increased and this good is an inferior good. b.) The number of buyers in the market has decreased. c.) The price of a complement good has decreased.arrow_forward
- An increase in the price of a complement good brings about a(an) * A. increase in quantity demanded of the substitute good. B. decrease in quantity demanded of the substitute good. C. increase in quantity demanded of the main good. D. decrease in quantity demanded of the main good.arrow_forwardAssume that imitation gemstones (an inferior good) are a low-cost alternative to diamonds (a normal good). What happens when average incomes increase? A. The demand for diamonds increases, and the demand for imitation gemstones decreases. B. The demand for diamonds decreases, and the demand for imitation gemstones increases. C. The demand for both diamonds and imitation gemstones increases. D. The demand for both diamonds and imitation gemstones decreases.arrow_forwardA 20 percent fall in price leads to 80 percent rise in the demand for a good. A consumer buys 100 units of the good at the price of7 20 per unit. At what price will the consumer buy 200 units of the good?arrow_forward
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