Eco 201 SNHU
An inferior good is one for which an increase in income causes a(n)
a. increase in supply.
b. decrease in demand.
c. increase in demand.
d. decrease in supply. - answer(b) decrease in demand
If an increase in the price of blue jeans leads to an increase in the demand for tennis
shoes, then blue jeans and tennis shoes are
a. substitutes.
b. complements.
c. normal goods.
d. inferior goods.
e. none of the above. - answer(a) substitutes
The law of demand states that an increase in the price of a good
a. decreases the demand for that good.
b. decreases the quantity demanded for that good.
c. increases the supply of that good.
d. increases the quantity supplied of that good. - answer(b) decreases the quantity
demanded for that good
The law of supply states that an increase in the price of a good
a. decreases the demand for that good.
b. decreases the quantity demanded for that good.
c. increases the supply of that good.
d. increases the quantity supplied of that good.
e. does none of the above. - answer(d) increases the quantity supplied of that good
If an increase in consumer incomes leads to a decrease in the demand for camping
equipment, then camping equipment is
a. a complementary good.
b. a substitute good.
c. a normal good.
d. an inferior good.
e. none of the above. - answer(d) an inferior good
A monopolistic market has
a. only one seller.
b. at least a few sellers.
c. many buyers and sellers.
d. firms that are price takers.
An inferior good is one for which an increase in income causes a(n)
a. increase in supply.
b. decrease in demand.
c. increase in demand.
d. decrease in supply. - answer(b) decrease in demand
If an increase in the price of blue jeans leads to an increase in the demand for tennis
shoes, then blue jeans and tennis shoes are
a. substitutes.
b. complements.
c. normal goods.
d. inferior goods.
e. none of the above. - answer(a) substitutes
The law of demand states that an increase in the price of a good
a. decreases the demand for that good.
b. decreases the quantity demanded for that good.
c. increases the supply of that good.
d. increases the quantity supplied of that good. - answer(b) decreases the quantity
demanded for that good
The law of supply states that an increase in the price of a good
a. decreases the demand for that good.
b. decreases the quantity demanded for that good.
c. increases the supply of that good.
d. increases the quantity supplied of that good.
e. does none of the above. - answer(d) increases the quantity supplied of that good
If an increase in consumer incomes leads to a decrease in the demand for camping
equipment, then camping equipment is
a. a complementary good.
b. a substitute good.
c. a normal good.
d. an inferior good.
e. none of the above. - answer(d) an inferior good
A monopolistic market has
a. only one seller.
b. at least a few sellers.
c. many buyers and sellers.
d. firms that are price takers.
