4. Which of the following will not cause a change in the demand for product A? M

ID: 1149318 • Letter: 4

Question

4. Which of the following will not cause a change in the demand for product A?

Multiple Choice

a.a change in tastes

b.a change in the price of A

c.a change in the number of buyers

d.a change in consumer incomes

Which of the following factors will decrease the current demand for a product?

Multiple Choice

a.an expected increase in the future price of the product

b. a decrease in the current price of a substitute product

c. an increase in the current price of a substitute product

d. a decrease in the current price of a complementary product

19 . An increase in the demand for bubble gum might be caused by

Multiple Choice

a. a decrease in income, assuming bubble gum is a normal good.

b. a decrease in the number of people chewing gum.

c. the fact that blowing bubbles is now an unpopular activity.

d. the fact that blowing bubbles is now a popular activity.

4. The correct answer is: b)

Reason: all other option signify an increase/decrease in Demand but option b) specifically mean an increase in the quantity demanded.

5. The correct answer is: b)

Reason: As the price of the substitute decreae, people shift to the substitute and thus the demand the product in question decreaes.

19. The correct answer is: d)

Reason: All the other three options would lead to a decrease in the demand for bubble gum.

Thanks!

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