Practice Questions
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Which of the following statements best describes the impact of inferior goods on consumer behavior when income rises?
When people earn more money, they tend to buy less of inferior goods. Other options are incorrect because Some might think that more money means buyin...
Which of the following statements best describes the relationship between inferior goods and their income elasticity of demand?
Inferior goods have a negative income elasticity of demand. Other options are incorrect because Some might think that inferior goods are good when inc...
If the price of a complementary good increases, what is the expected effect on the demand for its related good, considering demand elasticity?
When the price of a complementary good goes up, people buy less of it. Other options are incorrect because This answer suggests that demand will incre...
Which of the following statements best describes the relationship between inferior goods and consumer income when considering demand elasticity?
When people earn more money, they buy less of inferior goods. Other options are incorrect because This option suggests that when income goes down, dem...
Which of the following scenarios best illustrates the relationship between an inferior good and a complementary good?
When people earn more money, they buy fewer instant noodles because they can afford better food. Other options are incorrect because This option confu...
Which of the following is an example of an inferior good?
Instant noodles are an inferior good. Other options are incorrect because Organic vegetables are not inferior goods; Luxury cars are not inferior good...
Which of the following pairs of goods are considered complementary goods?
Cars and gasoline are complementary goods. Other options are incorrect because Some people think coffee and sugar are complementary because they are o...
Which of the following scenarios best illustrates the concept of an inferior good?
When people earn more money, they often buy less of cheaper items, like instant noodles. Other options are incorrect because This option suggests that...
During an economic recession, Sarah notices that her family is buying more instant noodles instead of fresh produce. Which of the following best explains this behavior in terms of inferior goods?
Instant noodles are considered inferior goods. Other options are incorrect because This answer suggests that fresh produce helps sell more noodles; Th...
How would an increase in the price of peanut butter likely affect the demand for jelly, assuming they are complementary goods?
When peanut butter costs more, people might buy less of it. Other options are incorrect because This answer suggests that higher peanut butter prices ...
If the price of Jiffy mix decreases, what is the likely effect on the demand for collard greens, assuming they are complementary goods?
When Jiffy mix costs less, more people will buy it. Other options are incorrect because This answer thinks that if people buy less Jiffy mix, they wil...
If the price of a popular complementary good increases, what is likely to happen to the demand for an inferior good?
When the price of a complementary good goes up, people may look for cheaper options. Other options are incorrect because This answer suggests that hig...
If the price of a complementary good rises, it will always lead to an increase in demand for an inferior good, regardless of consumer income levels.
When the price of a complementary good goes up, people buy less of it. Other options are incorrect because This answer suggests that the demand for in...
Which of the following products would be classified as an inferior good when consumer incomes decrease?
When people have less money, they often buy cheaper foods. Other options are incorrect because Some might think organic vegetables are cheaper when in...
When income decreases, the demand for __________ tends to increase, illustrating how consumer preferences shift in response to economic conditions.
When people have less money, they often buy cheaper items. Other options are incorrect because Normal goods are things people buy more of when they ha...
Arrange the following concepts related to consumer behavior and market dynamics in the correct sequence: A) Demand for inferior goods increases B) Consumer incomes decrease C) Prices of complementary goods rise D) Demand for complementary goods is affected
When people's incomes go down, they buy more inferior goods, which are cheaper options. Other options are incorrect because This option suggests that ...
Inferior goods are to demand increase during economic downturns as complementary goods are to what?
When the price of a complementary good drops, people buy more of it. Other options are incorrect because Some think that when people earn more, they s...
Which of the following statements accurately describe the relationship between inferior goods and complementary goods? Select all that apply.
None of the statements are correct. Other options are incorrect because This suggests that if a complementary good gets more expensive, people will bu...
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