Q11-Q20

1.Suppose that when the price of hamburgers decreases, the Ruiz family increases their purchases of ketchup. To the Ruiz family,

Select one:

a.hamburgers and ketchup are complements.

b.hamburgers and ketchup are substitutes.

c.hamburgers and ketchup are normal goods.

d.hamburgers are normal goods and hot dogs are inferior goods.

2.If a decrease in income leads to an increase in the demand for sardines, then sardines are

Select one:

a.an inferior good.

b.a neutral good.

c.a necessity.

d.a normal good.

3.In October, market analysts predict that the price of platinum will fall in November. What happens in the platinum market in October, holding everything else constant?

Select one:

a.The supply curve shifts to the right.

b.The supply curve shifts to the left.

c.The quantity demanded and the quantity supplied of platinum increase.

d.The demand curve shifts to the right.

4.The supply curve for watches

Select one:

a.shows the supply of watches consumers are willing and able to buy at any given price.

b.is downward sloping.

c.shows the relationship between the quantity of watches firms are willing and able to supply and the quantity of watches consumers are willing and able to purchase.

d.shows the relationship between the price of watches and the quantity of watches supplied.

5.Holding everything else constant, an increase in the price of MP3 players will result in

Select one:

a.a decrease in the quantity of MP3 players supplied.

b.a decrease in the demand for MP3 players.

c.an increase in the supply of MP3 players.

d.a decrease in the quantity of MP3 players demanded.

6.Suppose the demand for rescue services in our national parks is perfectly inelastic. This fact would mean that a 31 per cent increase in rescue fees leads to

Select one:

A.a 31 per cent increase in demand.

B.a 31 per cent decrease in the quantity demanded.

C.a 31 per cent decrease in demand.

D.no change in the quantity demanded.

E.a decrease in the quantity demanded to 0 rescues.

7.Which of the following doesNOTinfluence the price elasticity of demand?

Select one:

A.The number of substitutes available to consumers.

B.The amount by which the demand curve shifts when the price of another good changes.

C.Whether the good is a necessity or a luxury.

D.The price of the good relative to total income.

E.The time period buyers have to respond to a price change.

8.Of the following, which good has the most elastic demand?

Select one:

A.Sultana Bran

B.Sultana Bran purchased at a Woolworths supermarket

C.Breakfast food

D.Food

E.Breakfast cereal

.