In 1966, the Catholic Church eliminated the centuries-old re customarily ate fish on Friday. Given this, economics would predi o a. the price of fish would increase and the price of meat would o b. the price of both meat and fish would fall. o C. the price of both meat and fish would rise. o d. the price of fish would decrease and the price of meat would
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- As a general rule, is it safe to assume that a change in the price of a good will always have its most significant impact on the quantity demanded of that good, rather than on the quantity demanded of miller goods? Explain.If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded of that product, will another 10 decrease in the price cause another 3 increase (no more and no less) in quantity demanded?What does a downward-sloping demand curve mean about how buyers in a market will react to a higher price?
- Suppose there is a soda tax to curb obesity. What should a reduction in the soda tax do to the supply of sodas and to the equilibrium price and quantity? Canyon show this graphically? Hint: Assume that the soda tax is collected from the sellers.If butter and margarine are substitutes, an increase in the price of butter causes: Select one: O a. quantity demanded of margarine to fall and the demand curve for butter to shift toward the origin O b. quantity demanded of butter remains constant, but the demand for margarine decreases O c. the demand curve for both butter and margarine shift O d. decrease in quantity demanded for butter and an outward shift of the demand curve for margarineDuring 2008 the price of oil rose dramatically, which in turn caused the demand for small gas-efficient cars and large SUV to change. This can best be explained by saying that the higher the price of oil A. the lower the price of large SUV, and the higher the demand of small gas- efficient cars. B. the lower the price of large SUV, and the higher the quantity demanded of small gas-efficient cars. O c. the lower the price of large SUV, and the higher the supply of small gas-efficient cars. D. the lower the price of large SUV, and the lower the quantity supplied of small gas-efficient cars.
- Question 35 To construct a market demand curve, for each unit of quantity, find the highest price a person in the market is willing to pay for that unit. O for each price, add up how many units each person in the market is able and willing to buy at that price. for each price, add up how many units people would want to buy at that price regardless of ability to pay. for each unit of quantity, add up how much each person in the market wants to pay for that unit.Suppose we are analyzing the market for Sweet "Halwa" .What will happen to the equilibrium price and quantity of sweet if the price of sugar rises a little during Ramadan and Eid al-Fitr? Select one: O a. Price will increase and the Quantity will decrease Ob. Price will decrease and the Quantity will decrease Oc. None of the answers are correct O d. Price will increase and the Quantity will increase e. Price will stay exactly the same and Quantity will decrease O f. Quantity will stay exactly the same and the price will increaseWhich of the following best describes the law of demand? O When incomes increases, the demand for goods increases O When the price of a good decreases, the demand for the good increases When the demand for a good increases, consumers' willingness and ability to buy the good increases O When the price of a good decreases, the quantity demanded of the good decreases O When the price of a good increases, the quantity demanded of the good decreases
- The demand for a given good will decrease when the price of its substitute and the demand for a given good also decreases when the price of its complement Select one: O a. None of the provided answers are correct O b. rises; rises O c. falls; falls O d. falls; rises Assume a demand curve for coffee; Which of the following would NOT shift the demand curve for coffee? Select one: O a. an increase in wages O b. a decrease in the price of tea O c. price of coffee changes O d. a change in taste for teaThe law of demand states that if other factorsremain constant there isSelect one:a. An exponential relationship between priceof a good and the quantity demanded.O b. A negative relationship between the priceof a good and the quantity demanded.oc. A linear relationship between price of agood and the quantity demanded.O d. A positive relationshipbetween the price ofa good and the quantity demanded.Consider the market for tea. Which of the following scenarios would definitely result in an increase in the price of tea?O a. A new study is published explaining the benefits of tea, and at the same time a new technology allowing for more efficient tea farming is discovered.O b. The price of coffee falls, and at the same time a new technology allowing for more efficient tea farming is discovered.O c. Consumers expect the price of tea to fall in the future, and at the same time a fire wipes out a significant portion of tea farms.O d. The price of coffee falls, and at the same time the cost of labor to farm tea decreases.Oe. A new study is published explaining the benefits of tea, and at the same time a fire wipes out a significant portion of tea farms.