In Figure 3-7, suppose D1 and S1 indicate the initial conditions in the market for ice cream. Which of the following changes would tend to cause the shift from D1 to D2 in the market for ice cream?
a. a decrease in the price of sugar, an ingredient used to produce ice cream
b. an increase in the price of frozen yogurt, a substitute for ice cream
c. abnormally cold weather that decreased consumer desire for ice cream
d. an increase in the price of milk, an ingredient used to produce ice cream
c. abnormally cold weather that decreased consumer desire for ice cream
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If you know the cross elasticity between two goods is negative, then you know the goods are
A) substitutes. B) normal goods. C) complements. D) inferior goods. E) inelastic goods.
Refer to the information provided in Figure 33.3 below to answer the question(s) that follow.
Figure 33.3Refer to Figure 33.3. The domestic price of shoes is $80. After trade the price of a pair of shoes is $60. If shoes are a normal good and income in this country rises, then we would expect
A. the number of pairs of shoes imported into this country to increase. B. the number of pairs of shoes imported into this country to decrease. C. the number of pairs of shoes exported from this country to decrease. D. the number of pairs of shoes exported from this country to increase.