1b Markets, demand and supply

When the price of beer increases, the demand curve for beer
1. stays the same
2. shifts to the left
3. shifts to the right
4. gets steeper
An increase in the price of butter will increase the demand for margarine, as these two are
1. complements
2. substitutes
3. normal goods
4. inferior goods
If the consumers' income increases, the demand curve for a luxury good
1. shifts to the right
2. shifts to the left
3. does not change
4. gets steeper
When the price of apples decreases, the quantity of apples supplied
1. stays the same
2. rises
3. falls
4. could rise or fall
If there is a supply surplus (excess supply) for milk, the price of milk will
1. rise
2. fall
3. stay the same
4. could rise or fall
What happens to the market quantity of tea, if there is an increase in the price of coffee? The market quantity of tea will
1. rise
2. fall
3. stay the same
4. rise or fall
A price floor (minimum price) above the equilibrium price causes
1. a higher supply curve
2. a supply surplus (excess supply)
3. a demand surplus (excess demand)
4. a lower demand curve
If the price of chocolate increases, then
1. the demand for chocolate increases
2. the demand for chocolate decreases
3. the quantity demanded of chocolate rises
4. the quantity demanded of chocolate falls
A decrease in the price of wood, which is an input for producing furniture, causes
1. a shift of the demand curve for furniture
2. a shift of the supply curve of furniture
3. a higher equilibrium price of furniture
4. no change on the market for furniture
Which is n o t a shift factor for the supply curve?
1. price changes of input
2. progress in technology
3. change in consumers' tastes
4. introduction of a sales tax
If both the supply and the demand curve shift simultaneously to the left, which of the following does happen?
1. the equilibrium quantity falls
2. the equilibrium price falls
3. the equlibrium quantity and the equilibrium price fall
4. the equilibrium quantity rises and the equilibrium price falls
An increase in demand (curve shifts to the right) causes
1. the equilibrium price and the equilibrium quantity to fall
2. the equilibrium price and the equilibrium quantity to rise
3. the equilibrium price to fall and the equilibrium quantity to rise
4. the equilibrium price to rise and the equilibrium quantity to fall
Why does the demand curve of the good X shift to the left?
1. the price of the good X rises
2. the price of a substitute rises
3. the sales tax, paid by sellers, is reduced
4. the price of a complement rises
What happens to the equilibrium price and to the equilibrium quantity if the demand for a car decreases (curve shifts to the left)?
1. the equilibrium price and the equilibrium quantity fall
2. the equilibrium price and the equilibrium quantity rise
3. the equilibrium price rises and the equilibrium quantity falls
4. the equilibrium price falls and the equilibrium quantity rises
Why does the demand for cheese, being a normal good, increase (curve shifts to the right)?
1. the price for this cheese rises
2. the price of a complement rises
3. the price of a substitute falls
4. the consumers' income rises