Other Economics Answers

Demand Review: (pick one)

29) A decrease in price of IFuzzy iWuzzys will result in a (decrease/increase) in (D/QD).

30) A decrease in income will cause an (increase/decrease) in (D/QD) for spam.

Demand Review: (pick one)

27) If there are adequate substitutes for a product, it is (elastic/inelastic).

28) If there purchase takes only a small portion of income, it is probably (elastic/inelastic).

Demand Review:

Put “I” for inelastic demand or “E” for elastic demand for following products.

____ insulin

____ butter

____ new Honda Accord

____ Dell computers

____ table salt

Demand Review: (pick one)

25) If a purchase for a product can be delayed, it is (elastic/inelastic).

Demand Review: (pick one)

23) Total revenue (increase/decrease) if an elastic products price decreases.

24) Total revenue (increase/decrease) if an inelastic products price decreases.

Demand Review: (pick one)

21) An (elastic/inelastic) product has a flatter demand curve.

22) An (elastic/inelastic) product has steeper demand curve.

Demand Review: (pick one)

19) Elastic Demand - a change in price cause a (smaller/larger) change in QD.

20) Inelastic Demand- a change in price causes a (smaller/larger) change in QD.

What is Indifference Curve, explain with the help of diagram and also explain its

properties.

Demand Review: (pick one)

18) A “decrease in number of consumers” will (increase/decrease) the (D/QD) for (normal/inferior/all) goods. This is a (direct/inverse) relationship.

Demand Review: (pick one)

17) If consumers expect a shortage of citrus drops due to bad weather, there will be an (increase/decrease) in (D/QD) and demand curve will shift to (right/left).