Question

5. It is possible that consumers will increase their demand for a good as more consumers buy the good because_______.

of economies of scale

the supply of the good will increase

sometimes a good is more useful as more people use it

there is a fear of shortage

6. An example of a negative network externality is the ______.

virtual effect

snob effect

bandwagon effect

income effect

7. An Engel curve for good x describes

how the consumption of good x varies as the price of good x changes.

how the consumption of good x varies as the consumer’s income changes.

how the consumption of good x varies as the consumption of good y changes.

how the consumption of good x varies as price-consumption curve changes.

Answer 1

5. it i spossible that consumers will increase their demand for a good as more consumers buy the good because of "economies of scale".

Explanation- As more consumers buy the good so cost of production decreases due to economies of scale therefore price decreases and those consumers who were unable to buy the good before will also demand it.

6. An exapmle of a negative network externality is the "snob effect".

7. An Engel curve for good x describes "how the consumption of good x varies as the consumer's income changes".