AP Macro 1.4 & 1.5

Which of the following will cause the demand for milk to decrease?

• Increase in the price of a substitute

• a decrease in income assuming that milk is a normal good

• a decrease in the price of milk

• a decrease in the price of a complementary good

Which of the following will cause the quantity demanded of milk to decrease?

• Increase in the price of a substitute

• a decrease in the price of milk

• An increase in the price of milk

• a decrease in the price of a complementary good

The supply curve for automobiles will shift to the left in response to

• an increase in the efficiency of robot technology

• an increase in wages in the automobile industry

• a decrease in the number of consumers purchasing automobiles

• a decrease in consumers' income

Which of the following is not a determinant of demand?

• income

• price

• number of buyers / consumers

• expectations

When expectation of future price increases, what happens to the demand for the original good?

• it increases

• it remains unchanged

• it decreases

• it is not affected

Which of the following scenarios will NOT cause demand to increase?

• Substitutes' prices increase

• Income decreases

• Compliments' prices decrease

• Number of buyers/consumers increases

A leftward shift of a supply curve for avocados (a normal good) might be caused by

• An improvement in avocado picking techniques

• A decrease in the wages that must be paid to avocado pickers

• An increase in consumer incomes

• Some avocado famers leaving the market

A decrease in the price of butter would most likely decrease demand for

• Margarine

• Bagels

• Milk

• Syrup

The diagram above shows two demand curves for video games identified as D1 and D2. Which of the following will most likely cause a shift of the demand curve from D1 to D2?

• An increase in consumers' income assuming that video games are a normal good

• A decrease in the price of mobile games, a substitute good

• A decrease in the number of buyers in the market

• A decrease in the price of video games

The diagram above shows two demand curves for video games. Which of the following will most likely result in movement from point X to point Y along curve D1?

• A decrease in the number of buyers

• A decrease in the price of video games

• A decrease in expected future price of video games

• An increase in the negative effects of video games on players