Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 8, Problem 1MC
To determine
Movement.
Expert Solution & Answer
Explanation of Solution
When there is a change in the price, it leads to a movement in the
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Students have asked these similar questions
Assume that good Z is an inferior good for a consumer. If the consumer's income increases, thenA. the supply of good Z will increase.B. the supply of good Z will decrease.C. the demand of good Z will increase.D. the demand of good Z will decrease.
When there is an increase in demand,A. the demand curve shifts to the right of the original demand curve.B. the demand curve rotates clockwise.C. the demand curve shifts to the left of the original demand curve.D. the demand curve rotates counterclockwise.E. a lower price has increased the amount of the good that consumers will buy.
An increase in demand means that:
a. when the price falls, consumers are willing to purchase greater quantities of the good.
b. consumers cause the price drop by buying greater quantities of the good.
C. consumers are willing to purchase greater quantities of the good at any given price.
d. when the price rises, consumers are willing to purchase greater quantities of the good.
Chapter 8 Solutions
Managerial Economics: A Problem Solving Approach
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- If people buy less flowers at every price when their incomes fall, then a. there has been a decrease in population that changed demand. b. the demand for flowers is positively sloped. c. demand for flowers has increased. d. flowers are a normal good. e. the price of flowers has increased.arrow_forwardAs the price of bananas increases, ceteris paribus, the law of demand implies A. the quantity of bananas demanded will decrease. B. the demand for bananas will decrease. C. the quantity of bananas demanded will increase. D. the demand for bananas will increase.arrow_forwardThe law of demand implies, holding everything else constant, that as the price of pizza Select one: A. decreases, the demand for pizza will increase. B. decreases, the quantity of pizza demanded will decrease. C. decreases, the demand for pizza remains unchanged. D. increases, the demand for pizza will increase. E. increases, the quantity of pizza demanded will decrease.arrow_forward
- A movement along a demand curve caused by changes in the price of a good is known as: A. Change in Demand B. Shift in Demand C. Law of Demandarrow_forwardIf coffee and tea are substitutes, then an increase in the price of coffee a. Shifts the demand curve for tea to the right. b. Decreases the amount of coffee purchased. c. Increases the price of tea. d. All of the above.arrow_forwardIf price will change, holding other factors constant, the following will happen in the market for a consumerSingle choice. a. There will be a change in quantity demanded. b. There will be a change in quantity supplied. c. There will be a change in demand. d. There will be a change in supply.arrow_forward
- Good X and good Y are substitutes. If the price of good Y increases, then the a. Demand for good X will decrease. b. Demand for good X will increase. c. Quantity demanded of good Y will increase. d. Market price of good X will decrease.arrow_forwardButter and margarine are consumption substitutes. The supply of margarine increases. This should A. increase the demand for butter. B. increase the demand for margarine. C. raise the price of butter. D. lower the price of butter.arrow_forwardA change in which of the following will shift the demand curve for hamburgers? Select one: a. A fall in the price of french fries, a complement for hamburgers. b. An increase in the price of a hamburger. c. An increase in the number of hamburger restaurants. d. An.increase in the price of the meat used to produce hamburgers.arrow_forward
- The law of demand shows that: a. the demand curve is positively sloped. b. there is an inverse relationship between price and quantity demanded. c. individual demand is the same as market demand. d. when the price of a good increases, the quantity demanded increases.arrow_forwardsuppose pizzas and burgers are substitutes. what will definitely happen if there is an increase in the price of pizza? a. demand for burgers will increase. b. supply of burgers will decrease. c. demand for burgers will decrease. d. supply of burgers will increase.arrow_forwardIf we observe an increase in the price of a good and an increase in the amount of the good bought and sold, this could be explained by a. a decrease in the supply of the good. a. a decrease in the supply of the good. b. an increase in the demand for the good. b. an increase in the demand for the good. c. a decrease in the demand for the good. c. a decrease in the demand for the good. d. an increase in the supply of the good.arrow_forward
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