List three things that can cause an increase in demand. Be specific
What will be an ideal response?
Student responses will vary but may include:
(1.) An increase in income (normal good).
(2.) A decrease in income (inferior good).
(3.) An increase in the price of a substitute good.
(4.) A decrease in the price of a complementary good.
(5.) A change in preferences (the product is more desirable than before).
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If Gloria is woman in a developing country, then it is likely that
a. she is less educated than most men in her country b. her brother has dropped out of high school, but not she has graduated c. she has more employment opportunities and earns higher wages than her male classmates d. she and other women will not have to work long hours in agriculture e. she has special access to resources such as land, capital, and technology
Which of the following would cause an upward shift in the consumption function?
a. a stock market crash b. an increase in the price level c. a decrease in disposable income d. a decrease in the price level