Question

1. which of the following choices could cause the shift shown in this graph? a. an increase in the price of a substitute b. expectation of a new, improved product c. increased advertising d. a 20% pay raise
2. what is a market demand schedule? a. a graph showing how much of a product an individual will buy b. a graph showing how much of a product a market will buy c. a table showing how much of a product an individual will buy d. a table showing how much of a product a market will buy
3. which of the following replaces a costly item with a less costly one. a. change in demand b. the income effect c. the substitution effect d. consumer taste
4. which statement is an example of complementary goods affecting demand? a. an automobile maker lays off thousands. sales of electronic goods in that city fall. b. a bumper crop of cotton lowers the price of cotton clothing. sales of silk shirts decrease. c. as laptop computer sales increase, the demand of computer cases decrease. d. hi - tech companies lure people to a region. demand for housing rises.
5. what does the movement from b to b on the graph represent? a. a decrease in demand b. a decrease in quantity demanded c. an increase in quantity demanded d. an increase in demand

Explanation:

• Question 17: The shift from D1 to D2 is a left - ward shift in the demand curve, indicating a decrease in demand. Expectation of a new, improved product can cause consumers to wait for it, reducing current demand for the existing product. An increase in the price of a substitute would increase demand for the product in question, increased advertising would likely increase demand, and a 20% pay raise would generally increase demand if the product is normal.
• Question 18: A market demand schedule is a table that shows the total quantity of a product that all consumers in a market are willing and able to buy at various prices.
• Question 19: The substitution effect occurs when a consumer replaces a costly item with a less costly one. Change in demand refers to a shift in the demand curve, the income effect is related to changes in purchasing power due to income changes, and consumer taste is a non - price determinant of demand but not specifically about cost substitution.
• Question 20: Complementary goods are those that are used together. When laptop computer sales increase, the demand for computer cases (a complementary good) should increase, not decrease. Option a has no relation to complementary goods, option b is about substitute goods (cotton clothing and silk shirts), and option d is about the impact of job opportunities on housing demand.
• Question 21: A movement from b' to b on the graph represents a decrease in quantity demanded. This is a movement along the demand curve due to a change in the price of the good. A decrease in demand would be a left - ward shift of the entire demand curve.

Answer:

1. b. expectation of a new, improved product
2. d. a table showing how much of a product a market will buy
3. c. the substitution effect
4. None of the above (but if we assume there is a mis - typing in option c and it should say demand for computer cases increases, then c would be correct as laptops and computer cases are complementary goods)
5. b. a decrease in quantity demanded