1)In Shell gasoline market: Demand for Shell gasoline will decrease if the price of:

Multiple Choice

• a)BP gasoline decreases.

• b)BP gasoline increases.

• c)Motor vehicle decreases.

• d)Motor vehicle increases.

2)Darren loves to go to the movies, and he just learned that he can buy a ticket at a discounted price using his student ID. Darren now attends movies even more often. The change in Darren's behavior would be shown graphically by a:

Multiple Choice

• a)movement downward along his demand curve.

• b)leftward shift in his demand curve.

• c)movement upward along his demand curve.

• d)rightward shift in his demand curve

• 3) A price taker is a buyer or seller who:

• Multiple Choice

• a)can affect the market price, but only when collaborating with other buyers or sellers.

• b)takes prices in the area and averages them together to set the price for his/her good.

• c)cannot affect the market price.

• d)takes the market price and chooses to increase or decrease it.

• .

  4)An increase in the price of Heinz ketchup is likely to cause:

  Multiple Choice

• a)an increase in the demand for Hunt's ketchup, due to a change in preferences.

• b)a decrease in the demand for Hunt's ketchup, due to a change in preferences.

• c)an increase in the demand for Hunt's ketchup, due to a change in the price of a substitute good.

• d)an increase in the demand for Hunt's ketchup, due to a change in the price of a complementary good.

• 5) Consider a market that is in equilibrium. If it experiences a decrease in demand, what will happen? The demand curve will shift to the:

• Multiple Choice

• a)left, and the equilibrium price and quantity will rise.

• b)right, and the equilibrium price and quantity will fall.

• c)left, and the equilibrium price and quantity will fall.

• d)left, and the equilibrium price will increase and the equilibrium quantity will decrease.

• 6)The demand curve represents the relationship between:

• Multiple Choice

• a)income and price demanded with everything else held constant.

• b)consumer preferences and quantity demanded with everything else held constant.

• c)price and quantity demanded with everything else held constant.

• d)income and quantity demanded with everything else held constant.

• 7)The law of demand can be stated as all else equal:

• Multiple Choice

• a)quantity demanded rises as price rises.

• b)demand rises as price falls.

• c)quantity demanded rises as price falls.

• d)quantity demanded rises as income r

• 8)A demand schedule is a:

  Multiple Choice

• a)the table which shows the quantities of a particular good or service that consumers are willing to purchase at various prices.

• b)the line which shows the quantities of a particular good or service that consumers are willing to purchase at various prices.

• a graph which shows the quantities of a particular good or service that consumers are willing to purchase at various prices.

• 9)After getting a raise at work, Jasper now regularly buys steak instead of chicken. Which factor of demand has influenced Jasper's demand for steak?

  Multiple Choice

• a)Price of a complementary good

• b)Price of a substitute good

• c)Income

• d)Preferences

11) The recent rise in the price of gasoline has caused:

Multiple Choice

• a)automakers to spend more money marketing bigger vehicles.

• b)would not affect an automaker's supply decisions.

• c)automakers to produce more gas-efficient cars.

• d)automakers to drop the price of gas-efficient vehicles.