An increase in the price of a complement will result

Question 1

An increase in the price of a complement will result in a(n) __________ for the product.

A. decrease in the quantity demanded

B. increase in the quantity demanded

C. decrease in the demand

D. increase in the demand

Question 2

If coffee is a substitute for tea, and the price of coffee rises, what will happen?

A. Demand for tea will decrease.

B. Demand for tea will increase.

C. The quantity demanded of coffee will rise.

D. The quantity demanded of tea will decrease.

Question 3

The most important determinant of the degree of elasticity of demand is:

A. whether or not the item is a big ticket item.

B. whether or not the item is a luxury or not.

C. how many uses the product has.

D. the availability of substitutes.

Question 4

If a car dealership decides to offer a rebate to reduce the selling price of its cars and as a result finds an increase in its total revenues, then the demand for cars from this dealership is:

A. price elastic.

B. price inelastic.

C. rebate inelastic.

D. unit elastic.