Question

9.) Ceteris panbus, which of the following would not cause a change in the demand for mopeds? (A) A decrease in consumer incomes (B) A decrease in the price of mopeds (C) An increase in the price of bicycles (D) An increase in people's tastes and preferences for mopeds 10.) "Rising oil prices have caused a sharp decrease in the demand for oil." Speaking precisely, and using terms as they are defined by economists, choose the statement that best describes this quotation. (A) The quotation is correct: An increase in price always causes a decrease in demand. (B) The quotation is incorrect: An increase in price always causes an increase in demand, not a decrease in demand. (C) The quotation is incorrect: An increase in price causes a decrease in the quantity demanded, not a decrease in demand. (D) The quotation is incorrect: An increase in price causes an increase in the quantity demanded, not a decrease in demand. 11.) As the price of domestic automobiles has inched upward, customers have found foreign autos to be a better bargain. Consequently, domestic auto sales have been decreasing, and foreign auto sales have been increasing Using only the information in this quotation, ceteris paribus, which of the following best describes this statement? (A) A shift in the demand curves for both domestic and foreign automobiles. (B) A movement along the demand curves for both foreign and domestic automobiles (C) A movement along the demand curve for domestic autos, and a shift in the demand curve for foreign autos (D) A shift in the demand curve for domestic autos, and movement along the demand curve for foreign autos 12.) You hear a fellow student say: "Economic markets are like a perpetual see-saw. If demand rises, the price rises; if price rises, then demand will fall. If demand falls, price will fall; if price falls, demand will rise and so on forever." Correct your fellow student's obvious confusion in no more than one short paragraph.

Answer 1

9) C an increase in the price of bicycles

this will not affect the demand of mopeds as neither bicycles are complimentary nor substitutes to moped.

10) C. The above statement is incorrect .

according to the law of demand as the price of a good increases its quantity demanded decreases and not its demand

11)Ca movement along the demand curve for autos and a shift in demand curve for foreign autos

as autos and foreign autos are complimentary goods

12) According to the law of demand , keeping everything constant as the price of a good increases its quantity demanded falls and as the price of a good falls its quantity demanded rises. But if a demand of a good increases then its price falls and a demand of a good decreases then its price rises