If service stations raise the price of gasoline and, experience a decrease in demand for
automobile tires, then gasoline and tires are:
A. complementary goods
B. inferior goods
C. economic goods
D. substitute goods - A. Complementary goods
If the price of K declines, the demand curve for t...
ASD UPDATED Exam Questions and
CORRECT Answers
If service stations raise the price of gasoline and, experience a decrease in demand for
automobile tires, then gasoline and tires are:
A. complementary goods
B. inferior goods
C. economic goods
D. substitute goods - ✔✔✔A. Complementary goods
If the price of K declines, the demand curve for the complementary product J will:
A. shift to the left.
B. shift to the right
C. remain unchanged
D. decrease - ✔✔✔B. shift to the right
Which factor will increase the demand for a product?
A. a decrease in the number of buyers
B. an increase in the price of a complementary product
C. an increase in the price of a substitute product
D. an unfavorable report on the value of the product - ✔✔✔C. an increase in the price of a
substitute product
People demand more of product X when the price of product Y decreases. This means X and
Y are:
A. both inexpensive.
B. not related.
,C. substitutes.
D. complements - ✔✔✔D. Complements
An increase in the price of product B resulted in an increase in the demand for product C.
This indicates that products B and Care:
A. complementary goods
B. substitute goods
C. inferior goods
D. normal goods - ✔✔✔B. Substitute goods
If the price of gasoline increases and car dealers experience a decrease in demand for sport
utility vehicles, then gasoline and sport utility vehicles are:
A. substitutes
B. complements
C. inferior goods
D. unrelated goods - ✔✔✔B. Complements
An increase in the price of product X resulted in a decrease in the demand for product Y. This
indicates that products X and rare:
A. complementary goods
B. substitute goods
C. inferior goods
D. superior goods - ✔✔✔A. Complementary goods
If two goods are close substitutes:
A. consumers will always buy the one that has the lower price.
B. a fall in the price of one will decrease the demand for the other.
,C. a decrease in the price of one causes an increase in the demand for the other.
D. an increase in the price of one causes the demand for the other to decrease. - ✔✔✔A. a
fall in the price of one will decrease the demand for the other
Suppose that goods A and B are close substitutes and the price of good B falls. We would
then expect an:
A. increase in the demand for goods A and B
B. increase in the quantity demanded of good B and a decrease in the demand for good A
C. increase in the demand for good A and a decrease in the quantity demanded for good B
D. increase in the demand for good A and the quantity demanded for good B - ✔✔✔B.
increase in the quantity demanded of good B and a decrease in the demand for good A
Which would cause an increase in the demand for product A?
A. a decrease in the number of suppliers of product B
B. an increase in the cost of producing product A
C. a decrease in the price of a complementary product B
D. a decrease in the price of product A - ✔✔✔C. a decrease in the price of a complementary
product B
Other things remaining constant, the only way to move along a given supply curve for a
product is for:
A. the product's price to increase or decrease.
B. the price of resources used to produce the product to increase or decrease.
C. the number of sellers to increase or decrease.
D. technological changes to occur. - ✔✔✔A. the product's price to increase or decrease
If the price of beef rose and the demand for chicken increased, then beef and chicken are:
A. substitute goods
, B. inferior goods
C. consumer goods
D. complementary goods - ✔✔✔A. substitute goods
If product Y is an inferior good, an decrease in consumer incomes will:
A. result in a surplus of product Y.
B. not affect the sales of product Y.
C. shift the demand curve for product Y to the left.
D. shift the demand curve for product Y to the right. - ✔✔✔D. shift the demand curve for
product Y to the right.
A huge 50 percent off sale on golf clubs is advertised for next week. What happens this week
in the market for golf clubs?
A. The supply of golf clubs increases.
B. The supply of golf clubs decreases.
C. The demand for golf clubs increases.
D. The demand for golf clubs decreases.
E. The demand for and the supply of golf clubs decreases. - ✔✔✔D. The demand for golf
clubs decreases
If two goods are close substitutes:
A.an increase in the price of one will decrease the demand for the other.
B. an increase in the price of one will increase the demand for the other.
C. a decrease in the price of one will increase the demand for the other..
D. a decrease in the price of one will have no effect on the demand for the other. - ✔✔✔B. an
increase in the price of one will increase the demand for the other.
A decrease in the price of product X causes an increase in the demand for product Y. Products
X and Y are most likely to be:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MGRADES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.49. You're not tied to anything after your purchase.
