ECN $210-$TESTH$1$

P$.5$

$21.$ What does the term "demand" refer to$?$

a$.$ The quantity purchased at the equilibrium price

b$.$ The amounts that consumers are both willing and able to purchase at various prices.

c$.$ The amounts that consumers are either willing or able to purchase at various prices

d$.$ The price consumers are willing to pay for a certain quantity of a product

$22.$ What is the slope of a demand curve?

a$.$ It is downward sloping because when the price of a product falls, consumers are willing and able to buy more.

b$.$ It is upward sloping because when the price of a product falls, consumers are willing and a to buy more.

c$.$ It is upward sloping because when the price of a product increases, consumers are willing able to buy more.

d$.$ It is downward sloping because higher prices are associated with larger quantities.

$23.$ What is the effect of an increase in the price of coffee?

a$.$ It will lead to an increase in the demand for a cheaper substitute product

b$.$ It will lead to a decrease in the demand for a cheaper substitute product

c$.$ It will have no effect on a substitute product

d$.$ It will increase the demand for coffee

$24$ is the quantities that producers are willing and able to se period of time at various prices.

a$.$ Change in quantity supplied

b$.$ Supply

c$.$ Market supply

d$.$ Income effect

$25.$ What is the substitution effect?

a$.$ The effect that a change in income has on the demand for a substitute product

$b.$ The sacrifice which has to be made when an additional quantity of one produc

c$.$ The substitution of one product for another as a result of a change in their rel

d$.$ The substitution of a normal product for an inferior product as the result of a income.