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Questions and Answers
Why is the demand curve downward sloping?
Why is the demand curve downward sloping?
- Due to the change in production technology
- Due to the income and substitution effects (correct)
- Due to the law of supply
- Due to the increase in population
What is the effect of an increase in the price of strawberries on the consumer's real income?
What is the effect of an increase in the price of strawberries on the consumer's real income?
- It decreases the real income (correct)
- It has no effect on the real income
- It increases the real income
- It first increases and then decreases the real income
Which of the following is a factor that influences market demand?
Which of the following is a factor that influences market demand?
- The number of firms in the industry
- Expectations of future prices (correct)
- The type of government in power
- Change in production technology
What is the term for the change in the quantity demanded of a good in response to a change in the price of a related good?
What is the term for the change in the quantity demanded of a good in response to a change in the price of a related good?
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What is the policy that reduces the cost of a good to the consumer, increasing the demand for it?
What is the policy that reduces the cost of a good to the consumer, increasing the demand for it?
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