Two goods are substitutes when a decrease in the price of one good...
  • decrease quantity demanded.
  • decreases the demand for the other good.
  • The prices of the inputs used to produce the good.
  • an increase in total revenue.
Danita rescues dogs from her local animal shelter. When Danita's income rises 7 percent, her quantity demanded of dog biscuits increases by 12 percent. For Danita, the income elasticity of demand for dog biscuits it:
  • The prices of the inputs used to produce the good.
  • positive, and dog biscuits are a normal good.
  • 50 percent decrease in the quantity demanded.
  • Quantity will rise, and the effect on price is ambiguous.
Kelly and David are both capable of repairing cars and cooking meals. Which of the following scenarios is NOT possible?
  • supply of flour to increase.
  • the rate of tradeoff between the two goods being produced is constant.
  • Kelly has a comparative advantage in repairing cars and in cooking meals.
  • consume more good than we otherwise would be able to consume.
A decrease in the price of a good will...
  • an increase in total revenue.
  • decrease quantity supplied.
  • leftward shift of a demand curve.
  • decrease quantity demanded.
A decrease in demand is represented by a....
  • decrease quantity supplied.
  • leftward shift of a demand curve.
  • decrease quantity demanded.
  • an increase in total revenue.
When we move along a given demand curve,
  • quantity demanded responds to a change in price.
  • all non-price determinants of demand are held constant.
  • The prices of the inputs used to produce the good.
  • an increase in total revenue.
The price elasticity of demand measures how much...
  • quantity demanded responds to a change in price.
  • 50 percent decrease in the quantity demanded.
  • Quantity will rise, and the effect on price is ambiguous.
  • all non-price determinants of demand are held constant.
Comparative advantage is related most closely to which of the following?
  • Opportunity Cost.
  • less than 1.
  • Inferior good.
  • willing and able to purchase.
The quantity demanded of a good is the amount that buyers are....
  • an increase in total revenue.
  • willing and able to purchase.
  • what you give up to get that item.
  • fewer available substitutes.
Which of the following could be the cross-price elasticity of demand for two goods that are complements?
  • PPF
  • cookies.
  • -1.3
  • The prices of the inputs used to produce the good.
Which of the following is likely to have the most price inelastic demand?
  • Inferior good.
  • cookies.
  • The prices of the inputs used to produce the good.
  • less than 1.
The opportunity cost of an item is....
  • what you give up to get that item.
  • leftward shift of a demand curve.
  • all non-price determinants of demand are held constant.
  • an increase in total revenue.
A production of possibilities frontier is a straight line when...
  • decreases the demand for the other good.
  • consume more good than we otherwise would be able to consume.
  • The prices of the inputs used to produce the good.
  • the rate of tradeoff between the two goods being produced is constant.
The law of demand states that, other things equal, when the price of a good....
  • decreases the demand for the other good.
  • The prices of the inputs used to produce the good.
  • falls, the quantity demanded of the good rises.
  • consume more good than we otherwise would be able to consume.
When drawing a demand curve,
  • price is measured along the vertical axis, and quantity demanded is measured along the horizontal axis.
  • an increase in total revenue.
  • the rate of tradeoff between the two goods being produced is constant.
  • all non-price determinants of demand are held constant.
If the price elasticity of demand for a good is 5, then a 10 percent increase in price results in a....
  • decreases the demand for the other good.
  • The prices of the inputs used to produce the good.
  • quantity demanded responds to a change in price.
  • 50 percent decrease in the quantity demanded.
Price elasticity of demand =
  • quantity demanded responds to a change in price.
  • what you give up to get that item.
  • leftward shift of a demand curve.
  • (Q2-Q1)/[(Q1+Q2)/2]/(P2-P1)/[(P1+P2)/2]
"Order things equal, when the price of a good rises, the quantity supplied of the good also rises, and when the price falls, the quantity supplied falls as well". This relationship between price and quantity supplied....
  • 50 percent decrease in the quantity demanded.
  • positive, and dog biscuits are a normal good.
  • is referred to as the law of supply.
  • fewer available substitutes.
Weat is the main input in the production of flour. If the price of wheat decreases, then we would expect the...
  • fewer available substitutes.
  • 50 percent decrease in the quantity demanded.
  • supply of flour to increase.
  • The prices of the inputs used to produce the good.
When each person specializes in producing the good in which he or she has a comparative advantage, total production in the economy....
  • Rises.
  • is referred to as the law of supply.
  • falls, the quantity demanded of the good rises.
  • cookies.
If a decrease in income increases the demand for a good, then the good is a(n)...
  • leftward shift of a demand curve.
  • less than 1.
  • Inferior good.
  • Opportunity Cost.
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