Demand and Supply Revision

If disposable income decreases or the price of a complementary good rises:

• there is an upward movement along the demand curve for the good

• there is a downward movement along the demand curve for the good.

• the demand curve for a normal good shifts to the left.

• the demand curve for a normal good shifts to the left.

A complementry is a good:

• used in conjunction with another good.

• used instead of another good.

• of a lower quality of another good

• of higher quality than another good

Each point on the demand curve reflects:

• the highest price consumers are willing and able to pay for that particular unit of a good.

• the highest price sellers will accept for all units they are producing.

• the lowest-cost technology available to produce a good.

• all the wants of a given household.

An increase in the price of airpods:

• Results in a shift of the demand curve to the right

• Results in a movement along the demand curve to a lower quantity demanded

• Results in a shift of the demand curve to the left

• Results in a movement along the demand curve to a higher quantity

Which of the following will shift the supply curve for good 'X' leftward?

• a situation in which quantity demanded exceeds quantity supplied

• an increase in the cost of the machinery used to produce X

• a decrease in the wages of workers employed to produce X

• a technological improvement in the production of X

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Which of the following does NOT shift the supply curve?

• an increase in the price of the good

• a fall in the price of a substitute in production

• a decrease in the wages of labor used in production of the good

• a technological advance

An increase in the number of fast-food restaurants

• increases the demand for substitutes for fast-food meals.

• raises the price of fast-food meals.

• increases the supply of fast-food meals.

• increases the demand for fast-food meals.

Which of the following is NOT held constant while moving along a supply curve?

• prices of resources used in production

• expected future prices

• the number of sellers

• the price of the good itself

Which of the following pairs of goods are most likely substitute goods (substitutes)?

• CDs and CD players

• lettuce and salad dressing

• cola and lemon lime soda

• peanut butter and gasoline

The law of demand implies that, other things remaining the same

• as the demand for cheeseburgers increases, the price of a cheeseburger will fall.

• as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease.

• as income increases, the quantity of cheeseburgers demanded will increase.

• as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase.

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