6.2 Shifts of Demand and Supply Curves

If both the demand and supply curves of chocolate shift to the left, the equilibrium quantity will decrease.

• True
• False

Technological breakthroughs can shift a demand curve but not a supply curve.

• True
• False

A decrease in the price of ketchup could affect the demand for french fries.

• True
• False

The leftward shift of a given supply curve reduces price and increases quantity.

• True
• False

If both demand and supply increase, the equilibrium quantity will always increase.

• True
• False

If both the demand and supply curves shift to the left, but the demand curve shifts more than the supply curve, the equilibrium price will decrease.

• True
• False

If both the supply and demand curves shift rightward, but the supply curve shifts more than the demand curve, equilibrium price will decrease.

• True
• False

Both the demand curve and the supply curve for pencils shift rightward. How is the price of pencils affected? 

• Price increases
• Price decreases
• Price stays constant
• it cannot be determined with the given information

Which of the following situations would not shift the demand curve for dental floss? 

• an increase in the number of people who use dental floss 
• the release of a study that says flossing significantly reduces the risk of gum disease
• an increase in the price of mouthwash
• no new buyers or sellers enter the market and sales stay the same

An automobile plant employs most of the people in a town. The plant suddenly shuts down production. What effects might a local burger joint feel as a result? 

• The demand for burgers would increase.
• The demand curve for burgers would shift leftward. 
• The demand curve would shift rightward.
• The demand curve would not be affected.