Supply and Demand

Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for DVDs in the United States?

• a decrease in the price of DVDs
• a decrease in the price of DVD players
• a change in consumer preferences toward watching movies in movie theaters rather than at home
• a decrease in the number of people in the United States

Which of the following would not shift the supply curve for iphones?

• an increase in the price of iphones
• a decrease in the number of sellers of iphone
• an increase in the price of plastic, an input into the production of iphones
• an improvement in the technology used to produce iphones

If the price of printers goes down, what happens in the market for ink cartridges?

• Supply increases.
• Supply decreases.
• Demand increases.
• Demand decreases

Printers and ink cartridges are typically purchased together.  Economists would call these

• Stubstitues
• Complements
• Elastic
• Inelastic

When CDs became popular, people stopped listening to tape cassettes. This caused the ___________ curve for tape cassettes to shift ____________.

• demand.........right
• demand.........left
• supply.......right
• supply....... left

Iceberg & romaine are two different types of lettuce. For most consumers, iceberg and romaine are 

• complements
• substitutes
• inferior goods
• resources

Ramen noodles are a staple food item for many college students. Ramen noodles are very inexpensive, easy to prepare, and can be combined easily with other foods. After students graduate, find employment, and earn a higher income, they decrease their Ramen noodle purchases significantly. In this case, Ramen noodles are: 

• a normal good
• an inferior good
• a complement for higher income people
• none of these are correct

According to the Law of Supply, what happens as price increases? 

• The quantity supplied increases
• The quantity supplied decreases
• The supply curve shifts to the left
• The supply curve shifts to the right

Which of these would most likely increase the supply of Pizza Hut pizza? 

• a delivery trucker strike (who bring ingredients)
• a government excise tax
• a decrease in the price of cheese
• an increase in the supply of Runza hamburgers

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up
• it goes down
• it stays the same
• it is not effected