Demand and Supply

Which of the following is consistent with the law of demand?

• A) A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded.

• B) An increase in the price of a soda causes a decrease in the quantity of soda demanded.

• C) An increase in the price of a tape causes an increase in the quantity of tapes demanded.

• D) A decrease in the price of juice causes no change in the quantity of juice demanded.

Which of the following influences people's buying plans and varies moving along a demand curve?

• A) preferences

• B) the price of the good

• C) income

• D) the prices of related goods

The demand curve for a normal good shifts leftward if income ________ or the expected future

price ________.

• A) decreases; falls

• B) increases; rises

• C) increases; falls

• D) decreases; rises

A normal good is a good for which demand

• A) increases when income increases.

• B) decreases when population increases.

• C) increases when population increases.

• D) decreases when income increases.

In the figure above, an increase in the supply of oil would result in a movement from

• A) point a to point d.

• B) point a to point e.

• C) point a to point b.

• D) point a to point c.

In the figure above, an increase in the quantity of oil supplied but NOT in the supply of oil is

shown by a movement from

• A) point a to point c.

• B) point a to point b.

• C) point a to point e.

• D) point a to point d.

In the figure above, a decrease in the quantity of oil supplied but NOT in the supply of oil is shown

by a movement from

• A) point a to point e.

• B) point a to point d.

• C) point a to point b.

• D) point a to point c.

In the figure above, which movement could be caused by an increase in the wages of oil workers?

• A) point a to point d

• B) point a to point b

• C) point a to point c

• D) point a to point e

In the figure above, which movement could be caused by the development of a new, more efficient

refining technology?

• A) point a to point e

• B) point a to point c

• C) point a to point b

• D) point a to point d

The figure above represents the market for candy. People become more concerned that eating

candy causes them to gain weight, which they do not like. As a result, the

• A) demand curve will not shift, and the supply curve shifts from S1 to S2.

• B) demand curve shifts from D1 to D2and the supply curve shifts from S1 to S2.

• C) demand curve shifts from D2 to D1 and the supply curve shifts from S2 to S1.

• D) demand curve shifts from D2 to D1 and the supply curve will not shift.