1.Which one of the following correctly describes how price adjustment eliminates a surplus?

a) as the price falls, the quantity demanded decreases while the quantity supplied increases

b) as the price rises, the quantity demanded decreases while the quantity supplied increases

c)as the price rises, the quantity demanded increases while the quantity supplied decreases

d) as the price falls, the demand for substitutes of the good falls, eliminating the surplus

e)as the price falls, the quantity demanded increases while the quantity supplied decreases

2.If Hamburger Helper is an inferior good, then ceteris paribus, a decrease in income will lead to:

a) up along the demand curve for Hamburger Helper movement

b) a rightward shift of the demand curve for Hamburger Helper

c) a leftward shift of the demand curve for Hamburger Helper

d)movement down along the demand curve for Hamburger Helper

e)none of these

3.some sales managers are talking shop after work. Which of the following statements made refers to a movement along the demand curve?

a)"The Green Movement has caused a substantial increase in our sales of biodegradable cleaning products."

b) "Since our competition raised their prices our sales have doubled."

c) "It has been an unusually mild winter so our sales of woolen scarves are way down from last year."

d) "We decided to cut our prices and the increase in our sales has been fantastic."