Question

Gasoline prices increase by 50% but other prices remain constant. What is the result?(1 point)
Responses

A decrease in demand for gasoline
A decrease in demand for gasoline

An increase in demand for gasoline
An increase in demand for gasoline

No change in the quantity of gasoline demanded
No change in the quantity of gasoline demanded

More information is needed to answer this question
More information is needed to answer this question
Question 4
Which of the following are determinants of demand?(1 point)
Responses

Consumers expectations
Consumers expectations

The price of the good or service
The price of the good or service

Preference of consumers
Preference of consumers

All of the above
All of the above

None of the above
None of the above
Question 5
<png of the "Banana from Peanut Butter Jelly Time" a historic figure on the internet.>

If the price of peanut butter goes up, what happens to the demand for jelly if they are complement goods?

(1 point)
Responses

The quantity demanded of jelly will decrease
The quantity demanded of jelly will decrease

The quantity demand of jelly will increase
The quantity demand of jelly will increase

There will be no change in the demand for jelly
There will be no change in the demand for jelly

The demand for peanut butter will go up
The demand for peanut butter will go up

Oddly it is determined by the timing of bananas
Oddly it is determined by the timing of bananas

Answer 1

Q3 — Answer: The quantity of gasoline demanded falls.
Explanation: A rise in gasoline’s own price causes a movement along the demand curve (law of demand) — people buy less gasoline at the higher price.

Q4 — Answers: Consumers’ expectations and Preference of consumers.
Explanation: Determinants (shifters) of demand include tastes/preferences, expectations, income, prices of related goods, number of buyers. The good’s own price is not a determinant of demand (it causes movement along the demand curve).

Q5 — Answer: The demand (and thus quantity demanded at the current price) of jelly will decrease.
Explanation: Peanut butter and jelly are complements, so a price increase for peanut butter reduces purchases of peanut butter and thus reduces demand for jelly.