ECON 102 Study Guide - Midterm Guide: Demand Curve, Normal Good, Substitute Good
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Answer: a: the american dairy association starts a highly successful advertising campaign that makes most people want to drink more milk. Answer: c: hot dogs and hot dog buns are complements. 2: the above figure shows the market for pizza. The market is in equilibrium when people"s incomes decrease. If pizza is a normal good, then which point represents the most likely new price and quantity: a, b, c, d, e. Answer: e: the above figure shows the market for pizza. The market is in equilibrium when the cheese used to produce pizza falls in price. Answer: d: the above figure shows the market for pizza. The market is in equilibrium when the wages paid pizza workers increases. Answer: b: the above figure shows the market for pizza. The market is in equilibrium when new pizza firms enter the market. What point represents the most likely new price and quantity: a, b, c, d, e.
