$$D_X = f(P_Y)$$, \text{ where } D_X \text{ increases as } P_Y \text{ increases}$

$$D = f(N)$$, \text{ where } D \text{ increases as } N \text{ increases}$

Question 1

Which of the following events would cause the demand curve for normal goods to shift to the right?

Accepted Answer

An increase in consumer income

Question 2

If the price of margarine (a substitute for butter) increases, what is likely to happen to the demand for butter?

Accepted Answer

The demand for butter will increase

Question 3

Which of the following best describes the effect of an expected future price increase on current demand for a good?

Accepted Answer

Current demand increases

Question 4

If a good is an inferior good, what happens to its demand when consumer income rises?

Accepted Answer

Demand decreases

Question 5

Which of the following is NOT a factor that shifts the demand curve?

Accepted Answer

Change in the price of the good itself

Question 6

Suppose the price of peanut butter (a complement to jelly) increases. What happens to the demand for jelly?

Accepted Answer

The demand for jelly decreases

Question 7

A new advertising campaign increases the popularity of a product. What is the likely effect on the demand curve?

Accepted Answer

The demand curve shifts to the right

Question 8

If the number of consumers in a market doubles, what happens to the market demand for a normal good?

Accepted Answer

Market demand increases

Question 9

Which of the following scenarios would cause a leftward shift in the demand curve for regular toasters?

Accepted Answer

A decrease in the price of defibrillator toasters (a substitute)

Question 10

Which equation best represents the relationship between the demand for Good X and the price of its substitute Good Y?

Accepted Answer

$$D_X = f(P_Y)$$, 	ext{ where } D_X 	ext{ increases as } P_Y 	ext{ increases}$

Question 11

A fitness craze increases the popularity of gym memberships. What is the likely effect on the demand for protein shakes?

Accepted Answer

Demand for protein shakes increases

Question 12

If a hurricane is expected to cause a shortage of coffee beans, what happens to the current demand for coffee beans?

Accepted Answer

Current demand increases

Question 13

Which of the following best explains why a change in the price of a good does NOT shift the demand curve for that good?

Accepted Answer

Because price is already a variable on the demand curve

Question 14

If organic food is a normal good, what happens to its demand when consumer income falls?

Accepted Answer

Demand decreases

Question 15

Suppose DVD players and DVDs are complementary goods. If the price of DVD players falls, what happens to the demand for DVDs?

Accepted Answer

Demand for DVDs increases

Question 16

Which of the following is an example of a factor that would shift the demand curve for a product to the left?

Accepted Answer

A decrease in the price of a substitute good

Question 17

If steak is a normal good and consumer incomes rise, what happens to the demand for steak?

Accepted Answer

Demand increases

Question 18

Which of the following best describes the effect of advertising on the demand curve?

Accepted Answer

Advertising shifts the demand curve to the right

Question 19

If apples and oranges are substitutes, what happens to the demand for oranges if the price of apples decreases?

Accepted Answer

Demand for oranges decreases

Question 20

Which of the following is the correct formula for the demand function showing the effect of the number of consumers ($$N) on $$demand ($$D$$)?

Accepted Answer

$$D = f(N)$$, 	ext{ where } D 	ext{ increases as } N 	ext{ increases}$

Shifting Demand: Causes and Effects in Microeconomics

Guida di studio - Domande di pratica