12. If the number of buyers in the housing market decreases, what will happen?

a. Demand in the market will increase.

b. Demand in the market will decrease.

c. Supply in the market will increase.

d. Supply in the market will decrease.

13. Suppose that scientists find evidence that proves tattoos improve the body's immune system. What would we expect to see?

a. no change in the demand for tattoos

b. a decrease in the demand for tattoos

c. an increase in the demand for tattoos d. a decrease in the supply of tattoos

15. Which of the following would NOT shift the demand curve for a good or service?

a. a change in income

b. a change in the price of the good or service

c. a change in expectations about the price of the good or service

d. a change in the price of a related good

16. If a good is "normal," what will an increase in income result in?

a. an increase in supply of that good

b. an increase in the demand for the good

c. a decrease in the demand for the good

d. a lower market price

18. Most studies indicate that low cigarette prices are associated with greater use of marijuana. What type of goods does this indicate that cigarettes and marijuana are?

a. substitute goods

b. complementary goods

c. not related since one is legal and one is illegal

d. inferior goods

19. What impact does a person's expectations about the future have?

a. cannot affect demand because expectations change

b. can affect future demand

c. can affect current demand

d. can shift a supply curve

20. Currently you purchase six packages of hot dogs a month. You graduate in December and will start your new job on January 2. You have no plans to purchase hot dogs in January. What are hot dogs for you?

a. a "college-only" good

b. a normal good

c. an inferior good

d. a consumer good

21. If goods A and B are complements, what will result from an increase in the price of A?

a. more A and more B is sold

b. more A and less B is sold

c. less A and more B is sold

d. less A and less B is sold

22. When is demand said to be inelastic?

a. when the quantity demanded changes proportionately more than price

b. when the quantity demanded changes proportionately more than income

c. when the quantity demanded changes proportionately less than price

d. when the quantity demanded changes proportionately less than income

25. What would be the absolute value of the elasticity if demand is elastic?

a. less than 1

b. equal to 1

c. equal to 0

d. greater than 1