Multiple Choice Questions
1. A change in which of the following will NOT shift the demand curve for hamburgers?
a. The price of hot dogs
b. The price of hamburgers
c. The price of hamburger buns
d. The income of hamburger consumers
2. An increase in ________ will cause a movement along a given demand curve, which is called a change in ________.
a. Supply, demand
b. Supply, quantity demanded
c. Demand, supply
d. Demand, quantity supplied
3. Movie tickets and DVDs are substitutes. If the price of DVDs increases, what happens in the market for movie tickets?
a. The supply curve shifts to the left.
b. The supply curve shifts to the right.
c. The demand curve shifts to the left.
d. The demand curve shifts to the right.
4. The discovery of a large new reserve of crude oil will shift the ________ curve for gasoline, leading to a ________ equilibrium price.
a. Supply, higher
b. Supply, lower
c. Demand, higher
d. Demand, lower
5. If the economy goes into a recession and incomes fall, what happens in the markets for inferior goods?
a. Prices and quantities both rise.
b. Prices and quantities both fall.
c. Prices rise, quantities fall.
d. Prices fall, quantities rise.
6. Which of the following might lead to an increase in the equilibrium price of jelly and a decrease in the equilibrium quantity of jelly sold?
a. An increase in the price of peanut better, a complement to jelly
b. An increase in the price of Marshmallow Fluff, a substitute for jelly
c. An increase in the price of grapes, an input into jelly
d. An increase in consumers' incomes, as long as jelly is a normal good