The law of demand states that as the price of a particular good or service increases, _____.(1 point)

The law of demand states that as the price of a particular good or service increases, **quantity demanded decreases**.

As the price of a good increases, all else being equal, consumers will likely purchase _____.(1 point)

Responses

less of the good because substitutes have become relatively less expensive
less of the good because substitutes have become relatively less expensive

less of the good because substitutes have become relatively more expensive
less of the good because substitutes have become relatively more expensive

more of the good because substitutes have become relatively less expensive
more of the good because substitutes have become relatively less expensive

more of the good because substitutes have become relatively more expensive

As the price of a good increases, all else being equal, consumers will likely purchase **less of the good because substitutes have become relatively less expensive**.

Which of the following is not a determinant of demand?(1 point)

Responses

prices of related goods
prices of related goods

cost of production
cost of production

consumer incomes
consumer incomes

consumer preferences

The option that is not a determinant of demand is **cost of production**. Cost of production is a determinant of supply, not demand.

Sunscreen and beach towels are complementary goods. If the price of sunscreen increases, ceteris paribus, _____.(1 point)

Responses

the quantity demanded of beach towels will decrease for every possible price
the quantity demanded of beach towels will decrease for every possible price

the income of consumers will decrease
the income of consumers will decrease

the income of consumers will increase
the income of consumers will increase

the quantity demanded of beach towels will increase for every possible price

If sunscreen and beach towels are complementary goods and the price of sunscreen increases, ceteris paribus, **the quantity demanded of beach towels will decrease for every possible price**.

Teenagers frequently purchase similar shoes from one of two major competing shoe manufacturers. If the price of one manufacturer's shoes increases dramatically, teenagers are likely to purchase _____.(1 point)

Responses

more shoes from the competing manufacturer at any given price, as the two brands are substitutes
more shoes from the competing manufacturer at any given price, as the two brands are substitutes

fewer shoes from the competing manufacturer at any given price, as the two brands are complements
fewer shoes from the competing manufacturer at any given price, as the two brands are complements

fewer shoes from the competing manufacturer at any given price, as the two brands are substitutes
fewer shoes from the competing manufacturer at any given price, as the two brands are substitutes

more shoes from the competing manufacturer at any given price, as the two brands are complements

If the price of one manufacturer's shoes increases dramatically, teenagers are likely to purchase **more shoes from the competing manufacturer at any given price, as the two brands are substitutes**.

All of the above answers are correct. 5/5 100%

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