Each point on the demand curve reflects
All the wants of a given household
The highest price consumers are willing to pay for an additional unit of a good
The highest price sellers will accept for all units over time
The lowest cost technology available to produce a good
The father of modern economics is :
Prof. Ragnar
Adam Smith
Kenneth Boulding
Prof.Walker
What kind of relationship exist between price of a good and demand of its complementary good?
Direct
Inverse
No effect
Can be direct or inverse
The law of demand is given by
Prof. Marshall
Prof. Walker
J.B. Say
What kind of relationship exist between income and demand of inferior good?
Most goods
Are complement to each other
Are normal goods
Have vertical demand curves
Have vertical supply curves
A decline in the price of a good cause producers to reduce the quantity of the good they are willing to produce. This fact illustrates.
The law of demand
The law of supply
A change in supply
The nature of an inferior good
When demand decreases,
Price falls and Quantity decreases
Price falls and Quantity increases
Price rises and Quantity decreases
Price rises and Quantity increases
Income effect states that as price of a good falls, demand rises because there is rises in
Money Income
Real Income
Relative price of other goods
Marginal Utility
A complement is a good
Of lower quality than another
Used in conjunction with another good
Used instead of another good
Of higher quality than another