1. If we say that demand has increased, we mean that there has been
a. a leftward movement along the demand curve
b. a rightward movement along the demand curve
c. a leftward shift of the demand curve
d. a rightward shift of the demand curve
e. an increase in the slope of the demand curve
2. If demand for personal computers increases as a result of an increase in income,
a. personal computers must be a normal good
b. personal computers must be an inferior good
c. personal computers must be a complement
d. the substitutes for personal computers must be inferior goods
e. the substitution effect is larger than the income effect
3. Which of the following is most likely to be a normal good?
a. trips to the laundromat
b. macaroni-and-cheese dinners
c. tickets to major league baseball games
d. bus rides
e. used paperback books
4. If the price of a haircut (a normal good) increases, other things constant, the
a. demand for haircuts increases
b. demand for haircuts decreases
c. quantity demanded of haircuts decreases
d. quantity demanded of haircuts increases
e. demand for haircuts, or quantity demanded of haircuts decreases; they are the same
thing
5. If the price of gasoline (a normal good) decreases, other things constant,
a. the demand for gasoline increases
b. the demand for gasoline decreases
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, c. the quantity demanded of gasoline increases
d. the quantity demanded of gasoline decreases
e. neither the demand for gasoline nor the quantity demanded of gasoline changes because
everything is assumed constant along a demand curve
6. If a decrease in the price of good A causes an increase in the demand for good B, then A and B must
be complements.
a. True
b. False
7. Which of the following is the best example of substitutes?
a. coffee and cream d. tortillas and salsa
b. videotapes and VCRs e. hiking boots and athletic shoes
c. money and biscuits
8. Which of the following might cause the demand for ice cream, a normal good, to increase?
a. an increase in the price of ice cream
b. an increase in the price of sherbet
c. cooler weather
d. a decrease in the number of consumers
e. a decrease in consumer income
9. Which of the following will cause the demand curve for gasoline to shift leftward?
a. a decrease in the price of gasoline
b. an increase in the price of gasoline
c. a leftward shift of the supply of gasoline
d. a rightward shift of the supply of cars
e. a decrease in the price of bicycles
10. Two goods are considered substitutes only if a(n)
a. decrease in the demand for one leads to a decrease in the supply of the other
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a. a leftward movement along the demand curve
b. a rightward movement along the demand curve
c. a leftward shift of the demand curve
d. a rightward shift of the demand curve
e. an increase in the slope of the demand curve
2. If demand for personal computers increases as a result of an increase in income,
a. personal computers must be a normal good
b. personal computers must be an inferior good
c. personal computers must be a complement
d. the substitutes for personal computers must be inferior goods
e. the substitution effect is larger than the income effect
3. Which of the following is most likely to be a normal good?
a. trips to the laundromat
b. macaroni-and-cheese dinners
c. tickets to major league baseball games
d. bus rides
e. used paperback books
4. If the price of a haircut (a normal good) increases, other things constant, the
a. demand for haircuts increases
b. demand for haircuts decreases
c. quantity demanded of haircuts decreases
d. quantity demanded of haircuts increases
e. demand for haircuts, or quantity demanded of haircuts decreases; they are the same
thing
5. If the price of gasoline (a normal good) decreases, other things constant,
a. the demand for gasoline increases
b. the demand for gasoline decreases
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, c. the quantity demanded of gasoline increases
d. the quantity demanded of gasoline decreases
e. neither the demand for gasoline nor the quantity demanded of gasoline changes because
everything is assumed constant along a demand curve
6. If a decrease in the price of good A causes an increase in the demand for good B, then A and B must
be complements.
a. True
b. False
7. Which of the following is the best example of substitutes?
a. coffee and cream d. tortillas and salsa
b. videotapes and VCRs e. hiking boots and athletic shoes
c. money and biscuits
8. Which of the following might cause the demand for ice cream, a normal good, to increase?
a. an increase in the price of ice cream
b. an increase in the price of sherbet
c. cooler weather
d. a decrease in the number of consumers
e. a decrease in consumer income
9. Which of the following will cause the demand curve for gasoline to shift leftward?
a. a decrease in the price of gasoline
b. an increase in the price of gasoline
c. a leftward shift of the supply of gasoline
d. a rightward shift of the supply of cars
e. a decrease in the price of bicycles
10. Two goods are considered substitutes only if a(n)
a. decrease in the demand for one leads to a decrease in the supply of the other
This study source was downloaded by 100000900629999 from CourseHero.com on 10-31-2025 02:55:31 GMT -05:00
https://www.coursehero.com/file/246894973/Demand-and-Supply-Practice-Questions-for-Exam-1docx/
