Question

1. If consumer incomes increase, the demand for product X:

A) will necessarily remain unchanged.

B) may shift either to the right or left.

C) will necessarily shift to the right.

D) will necessarily shift to the left.

 

2. If two goods are complements:

A. they are consumed independently

B. an increase in the price of one will increase the demand for the other.

C. a decrease in the price of one will increase the demand for the other.

D. they are necessarily inferior goods.

 

3. 

Refer to the above diagram. The equilibrium price and quantity in this market are:

A) $1.00 and 200.

B) $1.60 and 130.

C) $.50 and 130.

D) $1.60 and 290.