1.) If Pepsi increases its prices which of the following would NOT happen? The d
ID: 1221586 • Letter: 1
Question
1.) If Pepsi increases its prices which of the following would NOT happen?
The demand for Pepsi would drop.
The quantity demanded of Pepsi would drop.
The demand for Coke would increase.
The equilibrium price of Coke would rise.
2.) A drop in the price of oil will result in
an increase in the demand for oil.
a decrease in the demand for oil.
an increase in the quantity of oil demanded.
a decrease in the quantity of oil demanded.
3.) An increase in demand for a good means that people will buy more of the good at
least one price.
at some prices.
at most prices.
at all prices.
4.) All of the following could shift the demand curve, except?
A shift of the supply curve
A rise in income
A change in the price of substitutes
An increase in population in the age group buying that good
5.) Which of the following is NOT a complement for automobiles?
Gasoline to run the car
Price of the car
The insurance for the car
The cost of the financing for the car
Explanation / Answer
a/ The demand for Pepsi would drop. This would not happen because pepsi and coke are substitutes, when the price of pepsi increases, quantity demanded of pepsi decreases as consumers remain on the same demand curve. The demand for coke increases.
2.A drop in the price of oil will result inan increase in the quantity of oil demanded. This is because consumers remain on the same demand curve. A change in quantity demanded occurs when people change their quantity demanded due to change in the price. A change in demand is said to have occured when people demand more or less of a good, price remaining the same.
3.An increase in demand for a good means that people will buy more of the good at all prices. Increase in demand leads to the shift of the demand curve to the right.
4. All of the following could shift the demand curve, except a shift of the supply curve. A shift in the supply curve has no effect on the supply curve.
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