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The law of demand states that if the price of CD’s rise, consumers will

• Buy more CDs
• Buy fewer CDs
• Quantity demanded will not change

The law of supply states that if the price of CD’s rise, suppliers will

• Supply more CDs
• Supply fewer CDs
• Quantity supplied will not change

Costs of producing gasoline has increased due to rising energy costs. What happens to the market for gasoline?

• Supply for gasoline will decrease 
• Supply for gasoline will increase
• Supply for gasoline will stay the same

When the demand curve shifts to the left, this suggests demand has

• increased

• decreased

• Quantity demanded has increased

• Quantity demanded has decreased

When the demand curve has shifted to the right, this suggests demand has

• increased

• decreased

• quantity demanded has increased

• quantity demanded has increased

Much of the tea in the U.K. is imported from India. If wages for Indian tea workers rose, thus increasing input costs, how would this effect supply of tea in the U.K.?

• Supply would increase

• Supply would Decrease

• Supply would stay the same

• India is not a real country

When the price of Nike brand shoes increases, we will probably go purchase a brand like Adidas or Pumas instead. Which of the following best explains this behavior?

• Substitution Effect

• Income Effect

• Complement Goods

• Consumer expectations

In Jim's household, everyone consumes and enjoys milk. Recently, the price on milk increased by two dollars, but despite this increase, Jim and his family still continue to buy the same amount of milk, for they consider it a necessity. Jim's family's demand for milk would be considered fairly

• elastic

• inelastic

When the price on Dasani bottle water decreased, Brad quit buying Nestle bottled water and switched over to Dasani. Brad's demand for Nestle water is fairly

• inelastic

• elastic

Which of the following are considered fixed costs? (There are two answers)

• Rent

• Firm operators' salaries

• Materials

• Part-time workers' wages