An increase in the cost of coffee beans that are used to make coffee will cause the _____ for coffee to shift _____.

Question 6 options:

a)

demand; right

b)

supply; right

c)

supply; left

d)

demand; left

Question 7(1 point)

Bus tickets are often considered _____ goods because _____.

Question 7 options:

a)

inferior; as income rises, demand for bus tickets falls

b)

inferior; as the price of a related good falls, demand for bus tickets increases

c)

substitute; as income rises, demand for bus tickets falls

d)

substitute; as the price of a related good falls, demand for bus tickets decreases

Question 8(1 point)

When the supply of coffee decreases and the demand for coffee increases simultaneously, the price of coffee will:

Question 8 options:

a)

rise.

b)

fall initially and then rise as demand increases to meet the increased supply.

c)

either rise or fall.

d)

fall.

Question 9(1 point)

In the market for gasoline, more consumers will begin driving at the onset of nicer weather, while the price of public transportation, a substitute, rises. The demand for gasoline should:

Question 9 options:

a)

stay the same since the effects will cancel each other out.

b)

shift left.

c)

shift right.

d)

stay the same since demand is not affected by price changes.

Question 10(1 point)

(Figure: Predicting Supply Shifts) The shift from supply curve 1 (S₁) to supply curve 2 (S₂) might be caused by an increase in:

Question 10 options:

a)

subsidies.

b)

expected future costs of labor.

c)

the prices of other goods made by firms.

d)

resource costs.