Question

If the consumer's income and the prices his tw onsumable goods increase by
the same percentage every time, what will be the consumer's reaction? Can you draw
consumer's demand curve under this condition?​

Answer 1

Answer:

Explanation:

Multiple Choice Quiz

Which of the following is not a determinant of a consumer's demand for a commodity?

a. Income

b. Population

c. Prices of related goods

d. Tastes

The law of demand refers to the

a. inverse relationship between the price of a commodity and the quantity demanded of the commodity per time period.

b. direct relationship between the desire a consumer has for a commodity and the amount of the commodity that the consumer demands.

c. inverse relationship between a consumer's income and the amount of a commodity that the consumer demands.

d. direct relationship between population and the market demand for a commodity.

If the price of a good increases, then

a. the demand for complementary goods will increase.

b. the demand for the good will increase.

c. the demand for substitute goods will increase.

d. the demand for the good will decrease.

If consumer income declines, then the demand for

a. normal goods will increase.

b. inferior goods will increase.

c. substitute goods will increase.

d. complementary goods will increase.

Which of the following will cause a decrease in quantity demanded while leaving demand unchanged?

a. An increase in the price of a complementary good.

b. An increase in income when the good is inferior.

c. A decrease in the price of a substitute good.

d. An increase in the price of the good.