AOL Quiz ECON2100-Principles of Micreeconomics Fall 2017 1· The law of demand st
ID: 1117452 • Letter: A
Question
AOL Quiz ECON2100-Principles of Micreeconomics Fall 2017 1· The law of demand states that, other things equal, a. when the price of a good decreases, the demand curve for the good shifts to the right b. when the price of a good increases, the quantity demanded of the good increases c. when the price of a good increases, the demand for the good shifts to the left. d. when the price of a good decreases, the quantity demanded of the good increases Which of the following would cause a movement down the demand curve (as opposed to a shift in the demand curve) for bananas? a. A decrease in the price of bananas. b. A diet fad that makes bananas more popular among 12-25 year olds. 2. e. An increase in the price of ice cream a complement for bananas when used in banana splits. d. A decrease in the price of grapefruit, a substitute for bananas. 3. Which of the following would cause the supply curve for jeans to shift to the right (as opposed to a movement up the supply curve)? a. An increase in consumers' incomes b. A technological improvement that makes jeans production less costly. c. An increase in the price of jeans d. All of the above. Figure 4-10 so price 45 40 30 25 20 15 100 200 300 400 500 600 700 800 900 quaniiy Refer to Figure 4-10. In this market, equilibrium price and quantity, respoctively, are a. $15 and 400 units. b. $20 and 600 units. c. $25 and 500 units. d. $25 and 800 units 4.Explanation / Answer
Answer:-
1. d. when the price of the good decreases, quantity demanded increases.
The law of demand states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa.
2. a. a decrease in price of bananas.
Because all other factors are other than the price of bananas, thus they will cause shift of demand curve and not downward or upward movement.
3. d. All of the above.
Because all the options are about factors other than price of the good. Thus it will cause shift in supply curve.
4. b. 20$ and 600 units.
Because the equilibrium price is the market price where the supply of goods is equal to the quantity of goods demanded. This is the point at which the demand and supply curves in the market intersect.