he law of demand implies that:

Select one:

a.

consumers are not responsive to price changes.

b.

consumers will, all other things unchanged, buy more at lower prices.

c.

sellers will, all other things unchanged, offer more on the market at higher prices.

d.

sellers will, all other things unchanged, offer less on the market at lower prices.

A decrease in the price of eggs, all other things unchanged, will result in a/an:

Select one:

a.

increase in the demand for eggs.

b.

increase in the supply of eggs.

c.

greater quantity of eggs supplied.

d.

greater quantity of eggs demanded.

The price of oranges falls. What happens in the market for apples, which are a substitute for oranges?

Select one:

a.

The equilibrium price falls and the equilibrium quantity rises.

b.

The equilibrium price rises and the equilibrium quantity falls.

c.

The equilibrium price and quantity rise.

d.

The equilibrium price and quantity fall.

After graduation from college you will receive a substantial increase in your income from a new job. If you decide that you will purchase more T-bone steak and less hamburger, then for you hamburger would be considered a/an:

Select one:

a.

normal good.

b.

substitute good.

c.

complementary good.

d.

inferior good.

The primary difference between a change in supply and a change in the quantity supplied is:

Select one:

a.

a change in quantity supplied is a shift in the supply curve, and a change in supply is a movement along the supply curve.

b.

both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions.

c.

a change in quantity supplied is a movement along the supply curve, and a change in supply is a shift of the supply curve.

d.

a change in supply is a movement to the left along the supply curve and a change in quantity supplied is a movement to the right along the supply curve.

If the price of a commodity increases as the result of increased demand, you would expect the:

Select one:

a.

supply to increase.

b.

quantity supplied to increase.

c.

quantity supplied to decrease.

d.

supply curve to shift to the right.

Exhibit: Demand and Supply Curves Price per unit S 25 20 15 10 D 5 50 150 250 Quantity per period