6. In the local 1. Which of the following statements is CORRECT? A) A change in demand is a movement along the demand curve, coffee shops go out of business, the and a change in quantity demanded is a shift of the demand curve. A) supply; right B) Both a change in quantity demanded and a change in demand B) demand; left are movements along the demand curve, only in different C) supply; left directions. C) Both a change in quantity demanded and a change in demand D) demand; right are shifts of the demand curve, only in different directions. 9. Suppose the local real estate market i D) A change in quantity demanded is a movement along the demand curve, and a change in demand is a shift of the demand recession causes local household income time, construction of a large subdivision curve. been completed. Given these two change 2. If goods A and B are substitutes, a decrease in the price of good estate is a normal good, we can predict th B will: will and the quantity of real estate A) increase the demand for good A. B) increase the demand for good B. A) fall; fall C) decrease the demand for good A. B) fall; rise D) increase the demand for good B and decrease the demand for C) fall; rise or fall good A. D) rise; fall or rise 3. An increase in the price of hamburger would probably result in 10. Suppose that supply increases and dema in the demand for hamburger buns. the most likely effect on price and quantity A) a decrease A) The price will increase, but quantity may B) an increase stay the same. C) no change B) The price will decrease, but quantity may D) random fluctuations stay the same. C) The price will decrease and quantity will D) The price will increase and quantity will i 4. When the price of gas goes down, the demand for tires goes up A likely possibility is that tires and gas are: A) substitutes. 1. A decrease in demand and a decrease in su B) complements. in equilibrium quantity and in eq C) both inferior goods. A) a decrease; an indeterminate change D) both inexpensive. B) an indeterminate change; an increase C) an indeterminate change: a decrease 5. If the price of a commodity increases, you can expect the: D) an increase; an indeterminate change A) supply to increase. B) quantity supplied to increase. 12. It is certain that the equilibrium price will fa C) quantity supplied to decrease A) the supply curve and the demand curve both D) supply curve to shift to the right. B) the supply curve shifts to the right and the der to the lett
