If Zoe believes that the price of apples is going to increase by 50% in four weeks

If Zoe believes that the price of apples is going to increase by 50% in four weeks, then her current demand for apples should increase.

Answer

True

The law of supply applies to normal goods, but not inferior goods.

Answer

False

What is the most likely effect on the demand of apples if the price of pears increases?

√Correct choiceThe demand for apples increases.

The demand for apples decreases.

The demand for apples remains unchanged.

Consider the supply curve for bottles of soda. Identify each event as causing either a shift in supply or a movement along the supply curve.

The price of soda increases by $0.50.

Correct label:

Movement along curve

The government taxes sugar to decrease soda consumption.

Correct label:

Shift in supply

Identify each good as being either a normal good or an inferior good.

Normal good

Correct label:

Filet mignon

iPad

Brand-name ketchup

Inferior good

Correct label:

Generic ketchup

Public transportation

Microwaveable cup of noodles