Question

60. Which of the following illustrates the law of demand?

a. Jorge buys fewer pencils at $2 per pencil than at $1 per pencil, ceteris paribus.

b. Chen buys more ice cream at $4 per half-gallon than at $3 per half gallon, ceteris paribus.

c. Karissa buys fewer sweaters at $50 each than at $35 each, ceteris paribus.

d. a, b, and c

e. a and c

61. All other things being equal, the __________ the percentage of one's budget spent on a good, the

__________ the price elasticity of demand.

a. greater; higher

b. smaller; lower

c. greater; lower

d. smaller; higher

e. a and b

62. An "increase in the quantity demanded" means that

a. the demand curve has shifted to the right.

b. the supply curve has shifted to the left.

c. price has declined and consumers therefore want to purchase more of the good.

d. given supply, the price of the good can be expected to rise.

63. If the demand for a good rises by more than the supply of the good falls, then the good’s equilibrium price

will __________ and its equilibrium quantity will __________.

a. rise; fall

b. rise; rise

c. fall; fall

d. fall; rise

60. Which of the following illustrates the law of demand?

a. Jorge buys fewer pencils at $2 per pencil than at $1 per pencil, ceteris paribus.

b. Chen buys more ice cream at $4 per half-gallon than at $3 per half gallon, ceteris paribus.

c. Karissa buys fewer sweaters at $50 each than at $35 each, ceteris paribus.

d. a, b, and c

e. a and c

61. All other things being equal, the __________ the percentage of one's budget spent on a good, the

__________ the price elasticity of demand.

a. greater; higher

b. smaller; lower

c. greater; lower

d. smaller; higher

e. a and b

62. An "increase in the quantity demanded" means that

a. the demand curve has shifted to the right.

b. the supply curve has shifted to the left.

c. price has declined and consumers therefore want to purchase more of the good.

d. given supply, the price of the good can be expected to rise.

63. If the demand for a good rises by more than the supply of the good falls, then the good’s equilibrium price

will __________ and its equilibrium quantity will __________.

a. rise; fall

b. rise; rise

c. fall; fall

d. fall; rise

60. Which of the following illustrates the law of demand?

a. Jorge buys fewer pencils at $2 per pencil than at $1 per pencil, ceteris paribus.

b. Chen buys more ice cream at $4 per half-gallon than at $3 per half gallon, ceteris paribus.

c. Karissa buys fewer sweaters at $50 each than at $35 each, ceteris paribus.

d. a, b, and c

e. a and c

61. All other things being equal, the __________ the percentage of one's budget spent on a good, the

__________ the price elasticity of demand.

a. greater; higher

b. smaller; lower

c. greater; lower

d. smaller; higher

e. a and b

62. An "increase in the quantity demanded" means that

a. the demand curve has shifted to the right.

b. the supply curve has shifted to the left.

c. price has declined and consumers therefore want to purchase more of the good.

d. given supply, the price of the good can be expected to rise.

63. If the demand for a good rises by more than the supply of the good falls, then the good’s equilibrium price

will __________ and its equilibrium quantity will __________.

a. rise; fall

b. rise; rise

c. fall; fall

d. fall; rise

60. Which of the following illustrates the law of demand?

a. Jorge buys fewer pencils at $2 per pencil than at $1 per pencil, ceteris paribus.

b. Chen buys more ice cream at $4 per half-gallon than at $3 per half gallon, ceteris paribus.

c. Karissa buys fewer sweaters at $50 each than at $35 each, ceteris paribus.

d. a, b, and c

e. a and c

61. All other things being equal, the __________ the percentage of one's budget spent on a good, the

__________ the price elasticity of demand.

a. greater; higher

b. smaller; lower

c. greater; lower

d. smaller; higher

e. a and b

62. An "increase in the quantity demanded" means that

a. the demand curve has shifted to the right.

b. the supply curve has shifted to the left.

c. price has declined and consumers therefore want to purchase more of the good.

d. given supply, the price of the good can be expected to rise.

63. If the demand for a good rises by more than the supply of the good falls, then the good’s equilibrium price

will __________ and its equilibrium quantity will __________.

a. rise; fall

b. rise; rise

c. fall; fall

d. fall; rise

60. Which of the following illustrates the law of demand?

a. Jorge buys fewer pencils at $2 per pencil than at $1 per pencil, ceteris paribus.

b. Chen buys more ice cream at $4 per half-gallon than at $3 per half gallon, ceteris paribus.

c. Karissa buys fewer sweaters at $50 each than at $35 each, ceteris paribus.

d. a, b, and c

e. a and c

61. All other things being equal, the __________ the percentage of one's budget spent on a good, the

__________ the price elasticity of demand.

a. greater; higher

b. smaller; lower

c. greater; lower

d. smaller; higher

e. a and b

62. An "increase in the quantity demanded" means that

a. the demand curve has shifted to the right.

b. the supply curve has shifted to the left.

c. price has declined and consumers therefore want to purchase more of the good.

d. given supply, the price of the good can be expected to rise.

63. If the demand for a good rises by more than the supply of the good falls, then the good’s equilibrium price

will __________ and its equilibrium quantity will __________.

a. rise; fall

b. rise; rise

c. fall; fall

d. fall; rise

60. Which of the following illustrates the law of demand?

a. Jorge buys fewer pencils at $2 per pencil than at $1 per pencil, ceteris paribus.

b. Chen buys more ice cream at $4 per half-gallon than at $3 per half gallon, ceteris paribus.

c. Karissa buys fewer sweaters at $50 each than at $35 each, ceteris paribus.

d. a, b, and c

e. a and c

61. All other things being equal, the __________ the percentage of one's budget spent on a good, the

__________ the price elasticity of demand.

a. greater; higher

b. smaller; lower

c. greater; lower

d. smaller; higher

e. a and b

62. An "increase in the quantity demanded" means that

a. the demand curve has shifted to the right.

b. the supply curve has shifted to the left.

c. price has declined and consumers therefore want to purchase more of the good.

d. given supply, the price of the good can be expected to rise.

63. If the demand for a good rises by more than the supply of the good falls, then the good’s equilibrium price

will __________ and its equilibrium quantity will __________.

a. rise; fall

b. rise; rise

c. fall; fall

d. fall; rise

60. Which of the following illustrates the law of demand?

a. Jorge buys fewer pencils at $2 per pencil than at $1 per pencil, ceteris paribus.

b. Chen buys more ice cream at $4 per half-gallon than at $3 per half gallon, ceteris paribus.

c. Karissa buys fewer sweaters at $50 each than at $35 each, ceteris paribus.

d. a, b, and c

e. a and c

61. All other things being equal, the __________ the percentage of one's budget spent on a good, the

__________ the price elasticity of demand.

a. greater; higher

b. smaller; lower

c. greater; lower

d. smaller; higher

e. a and b

62. An "increase in the quantity demanded" means that

a. the demand curve has shifted to the right.

b. the supply curve has shifted to the left.

c. price has declined and consumers therefore want to purchase more of the good.

d. given supply, the price of the good can be expected to rise.

63. If the demand for a good rises by more than the supply of the good falls, then the good’s equilibrium price

will __________ and its equilibrium quantity will __________.

a. rise; fall

b. rise; rise

c. fall; fall

d. fall; rise

60. Which of the following illustrates the law of demand?

a. Jorge buys fewer pencils at $2 per pencil than at $1 per pencil, ceteris paribus.

b. Chen buys more ice cream at $4 per half-gallon than at $3 per half gallon, ceteris paribus.

c. Karissa buys fewer sweaters at $50 each than at $35 each, ceteris paribus.

d. a, b, and c

e. a and c

61. All other things being equal, the __________ the percentage of one's budget spent on a good, the

__________ the price elasticity of demand.

a. greater; higher

b. smaller; lower

c. greater; lower

d. smaller; higher

e. a and b

62. An "increase in the quantity demanded" means that

a. the demand curve has shifted to the right.

b. the supply curve has shifted to the left.

c. price has declined and consumers therefore want to purchase more of the good.

d. given supply, the price of the good can be expected to rise.

63. If the demand for a good rises by more than the supply of the good falls, then the good’s equilibrium price

will __________ and its equilibrium quantity will __________.

a. rise; fall

b. rise; rise

c. fall; fall

d. fall; rise

60. Which of the following illustrates the law of demand?

a. Jorge buys fewer pencils at $2 per pencil than at $1 per pencil, ceteris paribus.

b. Chen buys more ice cream at $4 per half-gallon than at $3 per half gallon, ceteris paribus.

c. Karissa buys fewer sweaters at $50 each than at $35 each, ceteris paribus.

d. a, b, and c

e. a and c

61. All other things being equal, the __________ the percentage of one's budget spent on a good, the

__________ the price elasticity of demand.

a. greater; higher

b. smaller; lower

c. greater; lower

d. smaller; higher

e. a and b

62. An "increase in the quantity demanded" means that

a. the demand curve has shifted to the right.

b. the supply curve has shifted to the left.

c. price has declined and consumers therefore want to purchase more of the good.

d. given supply, the price of the good can be expected to rise.

63. If the demand for a good rises by more than the supply of the good falls, then the good’s equilibrium price

will __________ and its equilibrium quantity will __________.

a. rise; fall

b. rise; rise

c. fall; fall

d. fall; rise

Answer 1

Ans) 1) Law of demand states that price and quantity demanded have inverse relationship i.e people demand less goods at higher prices.

Option e (both a and c)

2) Option e (greater, higher and smaller, lower)

3) Increase or decrease in quantity demanded is caused only due to change in price of good itself and it causes movement along the curve.

When price increases, quantity demanded decreases and there an upward movement along the curve.

When price decreases, quantity demanded increases and there is downward movement along the curve.

Option c (price has declined)

4) Both price and quantity will increase.

Option b (rise , rise).