Over time, some goods change from being a normal good to an inferior good, or from being an inferior good to a normal good. One example is a CRT television, also known as a tube television. In the 1980s, households with more income usually purchased CRT TVs. Today, more CRT TVs are purchased by households with less income.

What has happened to CRT TVs?

Choose one:

A.A CRT TV has become an inferior good because people buy more of this type of TV when they have lower incomes.

B.A CRT TV has become a normal good because buyers now believe it to be of a lower quality than other types of TV.

C.A CRT TV has become an inferior good because as consumers gain more purchasing power, they purchase more of the product.

D.CRT TVshave become obsolete.

Which of the following willdecreasethe supply of laptop computers?

Choose one or more:

A.The cost of plastic (an input for the production of laptop computers) rises.

B.The number of sellers increases.

C.The governmentremovesa subsidy for the manufacture of laptop computers.

D.Alessefficient manufacturing technology for constructing laptop computers is used.

E.The price of laptop computers rises.

Sometimes word of mouth and expert recommendations cause a product to become more popular. However, the firm that produces this product may find it difficult to get parts to increase production, and it might have to pay higher prices to receive an adequate supply of parts. In this case, what will happen to the future price of the product?

Choose one:

A.The equilibrium price should fall as the supply curve shifts to the right and the demand curve shifts to the left.

B.The equilibrium price changes in an unknown direction as the supply curve shifts to the left and the demand curve shifts to the right.

C.The equilibrium price should rise as the supply curve shifts to the left and the demand curve shifts to the right.

D.The equilibrium price does not change as the supply curve shifts to the left and the demand curve shifts to the right.