Read the statements below and choose the correct option.Statement 1: In the case of an inferior good, the law of demand may or may not hold.Statement 2. In the case of a Giffen good, an increase in price leads to an increase in demand and vice versa. Group of answer choicesBoth statements are right.Only statement 1 is correct.Only statement 2 is correct.Both statements are wrong.

What distinguishes a Giffen good from other inferior goods?The demand decreases with a decrease in priceThe demand increases with an increase in priceThe demand decreases with an increase in incomeThe demand increases with a decrease in income

which of the following statements is correct, Amanda is confident that she knows the correct answer. She must choose:Question 38Select one:a.A decline in the price of X will increase the demand for substitute product Y.b.A decrease in income will decrease the demand for an inferior good.c.An increase in income will reduce the demand for a normal good.d.An increase in the price of C will decrease the demand for complementary product D.

Law of Demand - The tendency of suppliers to offer more of a good at a higher price.Question 9AnswerTrueFalse

The law of supply claims that sellers will increase their supply of a good if:A.the demand for the good goes up.B.the price of the good goes up.C.the demand for the good goes down.D.the price of the good goes down

Question 1Not yet answeredMarked out of 1.00Flag questionTipsQuestion textProducer surplus is larger at the equilibrium quantity and price than it will be at any other quantity and price.Question 1Select one:a.Trueb.FalseClear my choiceQuestion 2Not yet answeredMarked out of 1.00Flag questionTipsQuestion textWhat does the term inferior good mean?Question 2Select one:a.A good in which the quantity demanded falls as income rises, and in which quantity demanded rises and income fallsb.A good in which the quantity demanded rises as income rises, and in which quantity demanded falls as income fallsc.A good that can replace another to some extent, so that greater consumption of one good can mean less of the otherClear my choiceQuestion 3Not yet answeredMarked out of 1.00Flag questionTipsQuestion textWhat is the definition for factors of production?Question 3Select one:a.Manufacturers produce goods where the opportunity cost is lowest, so total production increases, benefiting both trading partiesb.The resources such as labor, materials, and machinery that are used to produce goods and servicesc.The market economy coordinates a process in which firms seek to produce goods and services in the quantity, quality, and price that people wantClear my choiceQuestion 4Not yet answeredMarked out of 1.00Flag questionTipsQuestion textThe price ceiling does change the equilibrium price.Question 4Select one:a.Trueb.FalseClear my choiceQuestion 5Not yet answeredMarked out of 1.00Flag questionTipsQuestion textExcess supply is at the existing price, the quantity demanded exceeds the quantity supplied; also called a shortage.Question 5Select one:a.Trueb.FalseClear my choiceQuestion 6Not yet answeredMarked out of 1.00Flag questionTipsQuestion textThe relationship between price and the quantity supplied of a certain good or service is .Question 6Select one:a.Interestb.Demandc.SupplyClear my choiceQuestion 7Not yet answeredMarked out of 1.00Flag questionTipsQuestion text_____________ is a price floor that makes it illegal for an employer to pay employees less than a certain hourly rate.Question 7Select one:a.Interest rateb.Scarcityc.Minimum wageClear my choiceQuestion 8Not yet answeredMarked out of 1.00Flag questionTipsQuestion textHow can you measure the quantity of labor?Question 8Select one:a.Number of hoursb.Number of workersc.All the aboveClear my choiceQuestion 9Not yet answeredMarked out of 1.00Flag questionTipsQuestion textWhat are the steps when using the supply and demand framework to think about how an event will affect the equilibrium price and quantity?Question 9Select one:a.(1) sketch a supply and demand diagram to think about what the market looked like before the event; (2) decide whether the event will affect supply or demand; (3) decide whether all workers at a firm can be required to join a union as a condition of employment;; (4) compare the new equilibrium price and quantity to the original onesb.(1) sketch a supply and demand diagram to think about what the market looked like before the event; (2) decide whether there is enough information necessary to make an informed decision; (3) decide whether the effect on supply or demand is negative or positive, and draw the appropriate shifted supply or demand curve; (4) compare the new equilibrium price and quantity to the original onesc.(1) sketch a supply and demand diagram to think about what the market looked like before the event; (2) decide whether the event will affect supply or demand; (3) decide whether the effect on supply or demand is negative or positive, and draw the appropriate shifted supply or demand curve; (4) compare the new equilibrium price and quantity to the original onesClear my choiceQuestion 10Not yet answeredMarked out of 1.00Flag questionTipsQuestion textWhat is the term for when the quantity demanded equals the quantity supplied?Question 10Select one:a.Equilibrium priceb.Equilibriumc.Equilibrium quantity