If cable TV service and satellite TV service are substitutes, a. a decrease in the price of cable will decrease the demand for satellite TV. b. an increase in the price of cable will decrease the demand for satellite TV. c. an increase in the price of cable will generally have no effect on the demand for satellite TV. d. an increase in the price of cable will shift the demand curve for satellite TV to the left.
If price rises, what happens to the demand for a product? a. It increases. b. It decreases. c. It does not change. d. Uncertain--economic theory has no answer to this question.
In a competitive market economy, a resource in short supply will be allocated a. so that each firm gets enough to keep producing some portion of its output. b. according to how much each firm purchased before the shortage.
c. to those firms that can make the most profitable use of it. d. by government regulation. Assume that black beans and rice are consistently in the diet of one particular family. How could you tell if these goods were complements, substitutes, or unrelated goods? a. If the price of black beans rose and the consumption of rice remained the same, they would be substitutes. b. If the price of black beans rose and the consumption of rice increased, they would be substitutes. c. If the price of black beans rose and the consumption of rice decreased, they would be substitutes. d. If the price of black beans rose and the consumption of both goods remained the same, they would be complements. When economists say the demand for a product has increased, they mean the a. demand curve has shifted to the right. b. price of the product has fallen, and consequently, consumers are buying more of it. c. cost of producing the product has risen. d. amount of the product that consumers are willing to purchase at various prices has decreased. Which of the following best represents the effects of a decrease in the price of belts, other things being equal? a. An upward movement along the demand curve for belts. b. A downward movement along the demand curve for belts. c. A rightward shift in the demand curve for belts. d. A leftward shift in the demand curve for belts.