Other Economics Answers

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).

Demand Review: (pick one)

16) If there is a decrease in price of razor handles, then demand for complement razor blades will (increase/decrease).

Demand Review: (pick one)

15) If there is decrease in price of computers, then the demand for complement software will (increase/decrease). This is (direct/inverse) relationship.

Demand Review: (pick one)

14) If there is “decrease in price of butter”, then demand for its substitute margarine will (increase/decrease). This is a (direct/inverse) relationship.

Demand Review: (pick one)

13) With introduction of calculator, the demand for the slide rule (increase/decrease) and demand curve for slide rules shifted (right/left)

Demand Review: (pick one in parentheses)

11) an “increase in income” would result in an (increase/decrease) in (D/QD) for spam.

12) Successful advertising taste normally leads to (increase/decrease) in (D/QD).

Demand Review: (pick one in parentheses)

9) “A change in demand” results from a (change in price/change in non price factors).

10) “An increase in income” would result in an (increase/decrease) in (D/QD) for CDs.