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Microeconomia > Parcial 1, 5to semestre > Flashcards

Parcial 1, 5to semestre Flashcards

1
Q

If the demand for a good decreases, it will cause the quantity and price of equilibrium to decrease.

True

False

A

True

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2
Q

If the cross elasticity of demand between two goods is negative, it means that they are complements.

True

False

A

True

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3
Q

If the price of Coca Cola increases, then the quantity of Pepsi demanded will increase.

True

False

A

True

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4
Q

If the cross elasticity of demand between two goods is negative, it means that they are substitutes.

True

False

A

False

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5
Q

If the demand for a good increases and the supply decreases by the same magnitude, the equilibrium price will remain the same.

True

False

A

False

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6
Q

What happens when in a market, the price is higher than the equilibrium price?

A

There is an excess supply.

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7
Q

The substitution effect refers to the fact that when the price of a good rises, “ceteris paribus” that good becomes more expensive compared to other goods, so we tend to replace that expensive good with others that are relatively less expensive.

True

False

A

True

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8
Q

A good and abundant harvest for all corn farmers is the most desirable thing for them because they get a very good income.

True

False

A

False

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9
Q

Inferior goods are those that:

A

Demand increases as income decreases.

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10
Q

To collect more taxes, the government will have to apply them on inelastic goods.

A

True

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11
Q

The demand for goods in the basic basket tends to be more:

A

Inelastic.

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12
Q

An increase in the number of buyers in the housing market in Monterrey, causes the quantity demanded of houses in Monterrey to increase.

A

True

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13
Q

If the slope of demand is zero, it means that your demand is perfectly elastic.

True

False

A

False

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14
Q

If the price of a good increases by 1% and its quantity demanded changes by 2%, then:

A

The good is elastic.

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15
Q

If the demand for a good is elastic, it is in my interest as a producer to lower its price in order to obtain higher income.
True

False

A

True

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16
Q

Indicate the correct statement:

If X is a normal good and the income of consumers decreases; the demand for X increases.

If X is a normal good and Y is a substitute for X, an increase in the price of X increases the demand for Y.

If X is an inferior good and the income of consumers increases, the demand for X increases.

If X is a normal good and Y is a substitute for X, an increase in income of consumers decreases the demand for Y.

A

If X is a normal good and Y is a substitute for X, an increase in the price of X increases the demand for Y.

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17
Q

If the price of a good increases by 2% and its quantity demanded changes by 1%, then:

A

The good is inelastic.

18
Q

The demand curve for a good will shift to the right when:

A

Increase in Consumer Income: If consumer incomes rise, they generally have more purchasing power, which can lead to an increase in the demand for normal goods. For example, if people’s incomes increase, they may buy more cars, luxury goods, or other items, causing the demand curve for these goods to shift to the right.

19
Q

An increase in the supply of a good causes an increase in the quantity of equilibrium and a decrease in the price of equilibrium of the good.

True

False

A

True

20
Q

The price elasticity of demand measures.

A

The sensitivity of consumers to a change in price.

21
Q

If the cross elasticity of demand between two goods is equal to zero, it means that they are substitutes.

True

False

A

False

22
Q

If your income increases and the income elasticity of cars is negative, it means that cars are inferior goods to you.

True

False

A

False

23
Q

The slope of the market demand curve for a good reflects:

A

A relationship between the price of a good and the quantity demanded of that good.

24
Q

Generally, the demand function for a commodity that has few substitutes is:

A

Inelastic.

25
Q

When two goods are complementary, their cross-price elasticities are:

A

Negative.

26
Q

If the demand for a good increases and the supply decreases by the same amount, the equilibrium quantity will remain the same.

True

False

A

False

27
Q

Suppose you work for a consulting firm. The government asks you to predict the equilibrium quantity and price of fish in the market by increasing the price of the equipment to process it:

A

Supply shifts to the left, the equilibrium price increases, and the equilibrium quantity decreases.

28
Q

If goods X and Y are complementary, given an increase in the price of X:

A

The quantity demanded of X decreases, and the demand for Y shifts to the left.

29
Q

The law of supply tells us that if the price increases, then the supply also increases.

True

False

A

False

30
Q

If demand and supply increase by the same magnitude, then:

A

Equilibrium price remains constant and equilibrium quantity increases.

31
Q

Which of the following variables does not affect the demand for a good?

The price of the good.

The price of other related goods.

Taste and preferences of the good.

The level of income.

A

The price of the good.

32
Q

Whenever the price of a good increases, more of that good will be consumed.

True

False

A

False

33
Q

The price elasticity of a good is greater:

A

The more and better substitutes it has.

34
Q

The demand curve shows:

A

An inverse relationship between price and quantity demanded.

35
Q

A good has an elastic price elasticity of demand when:

A

Small changes in the price generate big changes in the quantity they buy of that good.

36
Q

If there is a technological advance that causes producers’ costs to fall, then they will increase their quantity supplied.

True

False

A

True

37
Q

Insulin has a horizontal demand, that is, inelastic.

True

False

A

False

38
Q

If the cross elasticity of X and Y is equal to 1, it means that both goods have unitary elasticity.

True

False

A

True

39
Q

Indicate the correct statement:

If X is a normal good and Y is a substitute for X, an increase in income of consumers decreases the demand for Y.

If X is an inferior good and the income of consumers increases, the demand for X increases.

If X is a normal good and Y is a substitute for X, an increase in the price of X decreases the demand for Y.

If X is a normal good and Y is a complement to X, a decrease in the price of X increases the demand for Y.

A

If X is a normal good and Y is a complement to X, a decrease in the price of X increases the demand for Y.

40
Q

A shift in the supply curve to the right of a good can be due to:

A

A decrease in the cost of producing that good.

Microeconomia (1 decks)

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