An increase in demand for a good can be caused by
A) a decrease in the price of a substitute good.
B) a reduction in income if the good is a normal good.
C) a decrease in the price of a complementary good.
D) an increase in price of a complementary good.
C
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Figure 4.3 illustrates the demand for tacos. An increase in the number of consumers in the market would bring about a movement from
A) point a to point b. B) point c to point a. C) D2 to D1. D) D0 to D2.
The figure above shows the demand for fruit snacks. Which movement reflects an increase in demand?
A) from point a to point e B) from point a to point b C) from point a to point c D) from point a to point d
You are shopping at the local mall with an $80 gift certificate. Only three items catch your attention. The items include a Justin Bieber sheet set, a remote control helicopter, and an "Amazing Ab Belt." You would be willing to give up $60 for the sheets, $70 for the belt, and $80 for the helicopter. Knowing this, you decide to purchase the helicopter. The opportunity cost of the helicopter was:
A. $130, the combined value of the alternatives forgone. B. $80, the amount of the gift certificate spent. C. $70, the value of the ab belt. D. $60, the value of the sheets.
If the graph shown represents Stella's budget constraint, and hairbands cost $4, what must Stella's income to spend on these two items be?
A. $32
B. $16
C. $48
D. Cannot answer this question without more information.