I.1. According to the law of demand, an increase in the price of a product translates into

a) a decrease in demand for this product, regardless of changes in non-price variables

b) a decrease in the amount requested of this product, regardless of changes in non-price variables;

c) a decrease in demand for this product, only if non-price variables remain constant

d)a decrease in the amount requested of this product, only if non-price variables remain constant.

I.2. The supply curve for single-family homes would decrease if:

a) new, more cost-effective methods of prefabrication are being introduced in this industry;

b) construction workers' wages are falling

c) the number of construction contractors is increasing

d) municipal taxes are rising.

e) none of these answers

I.3. The next factor would result in a decrease in the amount offered of new homes and not an increase in supply

a) adapting the construction industry to increased demand

b) provincial government grants to the construction industry

c) an increase in the price of new homes

d) none of these answers

I.4. The supply curve of single-family homes would likely move down and to the right in the following case:

a) the number of construction contractors is decreasing

b) there has been a significant increase in the price of materials

c) land prices rise significantly

d) municipal taxes rise

e) none of these answers

I.5. The market supply curve for a product will not move if, all things being equal:

a) the number of producers is increasing

b) The government subsidizes the industry in question;

c) Discounts are provided by manufacturers

d); production costs are falling.

I.6. As a general rule, a decrease in the price of a product will result in

a) a decrease in the supply of this product, regardless of changes in non-price variables

b) a decrease in the supply of this product only if non-price variables remain constant

c) a decrease in the amount offered of this product, only if non-price variables remain constant.

d) decrease in the quantity offered of this product, regardless of variations in non-price variables;

Partie II The demand for a property X is given by the following relation:Q^D = 500 - 10P

Produce a demand schedule for whole prices between $0 and $10 (by filling out the table below) and illustrate this scale with a demand curve. P Q

II.2 What would be the amount requested if P = 20 ?and P = 40 $?Graphically identify these two pairs of prices and quantities requested that you will call A and B respectively on the graph.

II.3 Give the slope of this demand curve. Justify how you got it.

II.4 What would be the amount offered if P = 20 $?andP = 40 $?Graphically identify these two pairs of prices and quantities offered that you will call A' and B'.