Exam 3: Demand

Suppose that bicycles and skateboards are substitute goods. All else equal, if the price of bicycles decreases, there will be:

Holding all other factors constant, when the price of running shoes rises, the:

Use Table: Individual Demand Schedules for Pairs of Socks. What is the price of a pair of socks that would generate the greatest amount of total consumer surplus in the market? ​

Use Figure: The Market Demand for Canoes. What is consumer surplus in the market for canoes at a price of $75? ​ Figure: The Market Demand for Canoes

When the price of burgers increases, Patti's demand for salad decreases. Based on this information, it can be concluded that Patti considers burgers and salad to be:

If lamps and light bulbs are complements, then when the price of lamps increases, the quantity demanded of lamps _____, and the demand for light bulbs _____.

All else held constant, when consumers exhibit a weakened desire to purchase a product, the demand curve:

Suppose that the demand for product Z decreases when the price of product W rises. Economists would say that products Z and W are _____ goods.

Joanne has come to expect that horse feed prices increase every May. All else equal, how will this affect how Joanne buys horse feed in April?

Consumers consider that good A and good B are complements in consumption. When the price of good A increases, there is an expectation that there is _____ in quantity of good A demanded and _____ in the demand for good

All else equal, when the demand for a good increases in response to a decrease in the price of another good, these goods must be _____ goods.

Use Table: Individual Demand Schedules for Pairs of Socks. If the price of a pair of socks rises from $1 to $2, by how much did total consumer surplus change in the market? ​

Use Table: Demand Schedule for Pairs of Leather Boots. What is the most that Brian would be willing to pay for his first pair of leather boots? ​

If a person wants to find the marginal utility that is gained from consuming four tacos instead of three tacos, the correct way to calculate it would be to measure the:

Eliza is willing to pay $10 for her first ticket to the movies, $8 for her second ticket, and $6 for her third. If the price of a ticket is $9, how many tickets will Eliza purchase, and how much consumer surplus will she enjoy? If the price falls to $7, how do your answers change?

What does the demand curve illustrate?

Which of the following is a curve that illustrates the relationship between the price of a good and the quantity that people are willing to buy at each price?

Last year, Valerie bought 10 bags of potatoes each month. This year, after she received a raise, she buys four bags of potatoes each month. All else equal, what kind of good does Valerie consider potatoes? Explain.

All else equal, when income increases, this is reflected in a graph of the demand for an inferior good as:

Use Table: Individual Demand Schedules for Pairs of Socks. If the price of a pair of socks is $7, how much total consumer surplus will exist in the market? ​