ECON 6100 Chapter 8: Understanding Markets and Industry Changes.

Document Content and Description Below

ECON 6100 Chapter 8: Understanding Markets and Industry Changes.1. Demand and supply analysis is particularly important if a. the success of your firm is closely linked to the profitability of you... r primary industry b. the success of your firm is independent of the profitability of your primary industry c. the success of your firm is unlikely d. demand and supply analysis is unimportant ANSWER: a TOPICS: Section 1: Which Industry or Market 2. If movie theatres decided to increase the price for the movie tickets, holding other factors constant, what would happen to the demand for popcorn in the theatres? a. the demand for popcorn would shift to the left because popcorn and movies are substitute goods. b. the demand for popcorn would shift to the left because popcorn and movies are complementary goods. c. the demand for popcorn would shift to the right because popcorn and movies are substitute goods. d. the demand for popcorn would shift to the right because popcorn and movies are complementary goods. ANSWER: b TOPICS: Section 2: Shifts in Demand 3. Changes in the price of a product can cause a. A movement along the demand curve b. A shift of the demand curve c. A shift of the supply curve d. All of the above ANSWER: a TOPICS: Section 2: Shifts in Demand 4. After the housing bubble burst, consumer confidence plummeted and housing sales dropped to all-time lows. This caused the demand curve for normal goods to shift a. inwards b. outwards c. stay constant d. none of the above ANSWER: a TOPICS: Section 2: Shifts in Demand 5. The change in any factor other than ________ would shift the demand curve a. Weather b. interest rate c. Price d. all of the above ANSWER: c TOPICS: Section 2: Shifts in Demand 6. An increase in the price of a substitute shifts the demand curve to the _______ a. right b. left c. it does not change the demand curve d. none of the above ANSWER: a TOPICS: Section 2: Shifts in Demand 7. An increase in the price of a complement shifts the demand curve to the a. right b. left c. it does not change the demand curve d. none of the above ANSWER: b TOPICS: Section 2: Shifts in Demand 8. A decrease in the price of a substitute shifts the demand curve to the _______ a. right b. left c. it does not change the demand curve d. none of the above ANSWER: b TOPICS: Section 2: Shifts in Demand 9. A decrease in the price of a complement shifts the demand curve to the a. right b. left c. it does not change the demand curve d. none of the above ANSWER: a TOPICS: Section 2: Shifts in Demand [Show More]

Last updated: 1 year ago

Preview 1 out of 13 pages