Yes/No-Questions

1.The law of demand simply states that the lower the price of a product, the less amount that consumers are willing to buy. ()

2.The availability of substitutes affects the slope of the demand curve. ( )

3.Generally, a change in the price of a good cause a movement along a demand curve, while a change in any other factor besides the price the good causes a shift of the demand curve. ( )

4.An increase in the price of lamb will shift out the demand curve for steak. ( )

5.An increase in wages paid to coal miners will shift out the supply curve for coal. ( )

6.The imposition of a $5 per ton tax on coal will shift out the supply curve for coal. ()

7.Economic tax incidence depends on the relative slopes of the supply and demand curves. Specifically, the greater share of the economic tax incidence falls on the more inelastic party. ( )

8.The price elasticity of demand, , means a 10% increase in price leads to an % change in quantity demanded. ( )

9.Rent control policy in low-income housing markets usually results in a shortage of apartment housing, as suppliers will withdraw apartments from production, while consumers are demanding more. ( )

10."I care very little about what knowledge I learn, but nice grade is important." This type of preference could be illustrated by the following graph A. ( )

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