Question

D Question 1 1 pts Consider the market for raspberries in Australia. Which of the following would most likely lead to a decrease in demand O A decrease in the price of gooseberries, a substitute for raspberries. An increase in the price of blueberries, a complement for raspberries A decrease in income if raspberries are an inferior good. O A severe frost that destroys most of the Tasmanian raspberry crop. Both a and b are correct. DI Question 2 1 pts Consider the market for raspberries in Australia. Which of the following would most likely lead to an increase in the quantity demanded of raspberries? Note: a good is normal ifan increase in income results in an increase in demand. A good is inferior if an increase in income results in a decrease in demand. For instance, potatoes may be an inferior good because people may well get to substitute the consumption of potatoes for more expensive goods as they become richer. A decrease in the price of blueberries, a substitute for raspberries O An increase in the price of blueberries, a complement for raspberries. A decrease in income if raspberries are an inferior good. OA decrease in income if raspberries are a normal good O None of the above.

Answer 1

1 - Option A

A decrease in demand for gooseberries a substitute of raspberries.

2 - Option C

A decrease in income if raspberry is inferior good

4 - Option C

Neds total benefit increases as he consumes more pears

5 - Option A

Increase in price

6- Option C

Total benefit increases at a decreasing rate when consumption increases

7 - Option B

Opportunity coat of producing iron ore is increasing