DD & SS

Refer to Figure above. Which of the following would be most likely to cause the demand for Dr. Pepper to shift from D0 to D1?

• a decrease in income, assuming that Dr. Pepper is a normal good

• an increase in the price of 7-UP, assuming 7-UP is a substitute for Dr. Pepper

• a decrease in the price of Dr. Pepper

• a reduction in the price of sugar used to make Dr. Pepper

Suppose the demand for books goes down when the price of video games goes down. We can say that these two goods are

• complements.

• substitutes.

• unrelated goods.

During an economic downturn when consumer income falls, the demand for tacos increases and the demand for sushi decreases. This implies that tacos

• are a normal good and sushi is an inferior good.

• are an inferior good and sushi is a normal good.

• and sushi are inferior good

• and sushi are normal good

A decrease in demand (demand curve shifts to the left) for cameras would likely be caused by

• an increase in the price of a substitute good.

• an increase in the price of cameras.

• an increase in the price of a complementary good.

• a decrease in the price of cameras.

When the decrease in the price of one good causes the demand for another good to decrease, the goods are

• normal.

• inferior.

• substitutes.

• complements.

According to the law of supply, there is a

• negative relationship between price and the quantity of a good supplied.

• positive relationship between price and the quantity of a good supplied.

Refer to Figure above. A decrease in the wage rate of pizza makers will cause a movement from Point B on supply curve S2 to

• Point A on supply curve S2.

• Point C on supply curve S2.

• supply curve S3.

• supply curve S1.

Refer to Figure above. A decrease in the price of mushrooms (an input for gardenburgers) will cause a movement from Point B on supply curve S2 to

• supply curve S3.

• supply curve S1.

• Point A on supply curve S2.

• Point C on supply curve S2.

Refer to Figure above. A decrease in quantity supplied is represented by a movement from

• S2 to S1.

• S2 to S3.

• Point B to Point A along supply curve S2.

• Point B to Point C along supply curve S2.

Refer to Figure above. Assume hamburgers are a normal good. An increase in income will cause a movement from

• Point A to Point B.

• Point G to Point F.

• D1 to D2.

• S1 to S2.