Supply-demand analysis of commodities


Problem 1: An announcement that smoking will harm your ability to think clearly will most likely result in

a. an increase in the quantity of cigarettes demanded
b. a decrease in the demand for cigarettes
c. no change in smoking habits
d. an increase in the price of cigarettes

Problem 2: Given that chicken and beef are substitute goods, if the price of chicken decreases substantially, there would be

a. an increase in the demand for beef
b. decrease in the demand for beef
c. decrease in the quantity of beef demanded.
d. No change in the demand for beef

Problem 3: Given that pizza is a normal good, if student's income at your college increases substantially, there would be

a. an increase in the demand for pizza
b. an increase in the quantity of pizza demanded.
c. a decrease in the demand for pizza
d. no change in the demand for pizza

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Microeconomics: Supply-demand analysis of commodities
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