Consider the market for raspberries in Australia. Which of the following would most likely lead to a decrease in demand ?

Consider the market for raspberries in Australia. Which of the following would most likely lead to a decrease in demand?

A decrease in the price of gooseberries, a substitute for raspberries.

An increase in the price of blueberries, a complement for raspberries

A decrease in income if raspberries are an inferior good.

A severe frost that destroys most of the Tasmanian raspberry crop.

Both a and b are correct.

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Question 2

1 pts

Consider the market for raspberries in Australia. Which of the following would most likely lead to an increase in the quantity demanded of raspberries? Note: a good is normal if an increase in income results in an increase in demand. A good is inferior if an increase in income results in a decrease in demand. For instance, potatoes may be an inferior good because people may well get to substitute the consumption of potatoes for more expensive goods as they become richer.

A decrease in the price of blueberries, a substitute for raspberries.

An increase in the price of blueberries, a complement for raspberries.

A decrease in income if raspberries are an inferior good.

A decrease in income if raspberries are a normal good.

None of the above.

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Question 5

1 pts

Hamburgers are an inferior good for Stephen. Which of the following will cause a decrease in demand? Note: a good is normal if an increase in income results in an increase in demand. A good is inferior if an increase in income results in a decrease in demand. For instance, potatoes may be an inferior good because people may well get to substitute the consumption of potatoes for more expensive goods as they become richer.

An increase in price.

A decrease in income.

An increase in income.

An increase in the price of hot dogs, a substitute for hamburgers.

None of the above.

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Question 6

1 pts

Which of the following statements best explains why the demand curve slopes downwards?

Marginal benefit increases as consumption increases.

Individuals have unlimited resources and limited wants.

Total benefit increases at a decreasing rate as consumption increases.

Total benefit decreases at an increasing rate as consumption increases.

a and d are correct. 

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Question 8

1 pts

The opportunity cost of buying Abba's greatest hits on an online store (such as iTunes) is:

Negligible because the costs to iTunes for supplying electronic music is very low.

The dollar price of downloading an item from iTunes.

The value of your time spent downloading Abba's album from iTunes.

The sum of b and c.

None of the above.

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Question 9

1 pts

Carl owns an iPad that he values at $150. Jill does not own an iPad and values the same iPad at $125. Which of the following is true:

Trade can make both Carl and Jill better off.

There is no room for gains for trade.

When trade occurs the exchange price will be $137.50 but only Carl will be better off

When trade occurs the exchange price will be $137.50 and but only Jill will be better off

When trade occurs the exchange price will between $125 and $150 and both Carl and Jill will be better off