Question

QUESTION 8

1. How will the following affect the individual demand curve for bus transportation:  A decrease in the price of bus transportation.

   		Right shift
   		Left shift
   		No effect

0.25 points   

QUESTION 9

1. How will the following affect the individual demand curve for bus transportation:  A decrease in the price of cars (substitutes).

   		Right shift
   		Left shift
   		No effect

0.25 points   

QUESTION 10

1. How will the following affect the individual demand curve for marijuana:  A scientific report that marijuana causes anxiety, panic attacks, problems with memory and learning, and loss of coordination.

   Right shift

   Left shift

   No effect

   QUESTION 14

   What will the following do to the individual demand curve for eyeglasses?

   --Increase in the price of eyeglasses

   		The demand curve will shift to the left.
   		The demand curve will shift to the right.
   		There will be no shift.

   What will the following do to the individual demand curve for eyeglasses?

   --A radio campaign promoting the attractiveness of eyeglasses.

   		The demand curve will shift to the right.
   		The demand curve will shift to the left.
   		There will be no shift.

   0.25 points   

   QUESTION 17

   0.25 points   

   QUESTION 16

   What will the following do to the individual demand curve for eyeglasses?

   --DMV requirements that even people with minor visual impairment must wear eyeglasses.

   		The demand curve will shift to the right.
   		The demand curve will shift to the left.
   		There will be no shift.

   0.25 points   

   QUESTION 15

   What will the following do to the individual demand curve for eyeglasses?

   --Decrease in the price for exams given by optometrists.

   		The demand curve will shift to the right.
   		The demand curve will shift to the left.
   		There will be no shift.

   QUESTION 11

   How will the following affect the individual demand curve for marijuana:  An increase in the population using marijuana for pain relief.

   		Right
   		Left
   		No effect

   How will the following affect the individual demand curve for cigarettes:  An expectation that the price of cigarettes will increase in the future.  

   		Right shift
   		Left shift
   		No effect

   0.25 points   

   QUESTION 13

   0.25 points   

   QUESTION 12

   How will the following affect the individual demand curve for red wine:  A decrease in the price of cheese and grapes (complement goods).

   		Right shift
   		Left shift
   		No effect

Answer 1

8. Option A.

• When the price of any good or a service decreases, then it's quantity demanded Increases according to the law of demand.
• Hence when the price of bus transportation decreases, quantity demanded increases which leads to a rightward shift of the demand curve.

9. Option B.

• Given that cars and bus transportation are substitutes of each and we know that when the price of one good decreases the demand for the other good also decreases if they are perfect substitutes of each other.
• Hence when the price of car decreases, the demand for bus transportation also decreases due to positive price elasticity of demand.
• This leads to the leftward shift of the demand curve for bus transportation.

10. Option B.

• When the ill effects of using marijuana is identified, people defer from purchasing them which causes the demand to fall.
• This shifts the demand curve for marijuana towards left.

14. Option B.

• According to the law of demand, when the price of a good increases, its quantity demanded decreases.
• Hence when the price of sunglasses increases, its quantity demanded will decrease and hence the demand curve will shift to the left.