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Price (dollars per fruit snack D3 Quantity (fruit snacks) In the figure above, which movement reflects an increase in demand? A) from point a to point e B) from point a to point c C) from point a to point b D) from point a to point d In the figure above, which movement reflects a decrease in demand? A) from point a to point d B) from point a to point e C) from point a to point c D) from point a to point b In the figure above, which movement reflects a decrease in quantity demanded but NOT a decrease in demand? A) from point a to point c B) from point a to point e C) from point a to point d D) from point a to point b In the figure above, which movement reflects how consumers would react to an increase in the price of a non-fruit snack? A) from point a to point b B) from point a to point d C) from point a to point c D) from point a to point e In the figure above, which movement reflects an increase in the price of a substitute for fruit snacks? A) from point a to point d B) from point a to point e C) from point a to point b D) from point a to point c In the figure above, which movement reflects an increase in the price of a complement for fruit snacks? A) from point a to point b B) from point a to point d C) from point a to point e D) from point a to point c 7change in the price of a good A) shifts the good's demand curve but does not cause a movement along it. B) does not shift the good's demand curve but does cause a movement along it. C) shifts the good's demand curve and also causes a movement along it. D) neither shifts the good's demand curve nor causes a movement along it. A reduction in the price of a good A) does not shift the good's demand curve leftward but does decrease the quantity demanded. B) shifts the good's demand curve leftward but does not decrease the quantity demanded. C) shifts the good's demand curve leftward and also decreases the quantity demanded. D) neither shifts the good's demand curve leftward nor decreases the quantity demanded. A decrease in quantity demanded caused by an increase in price is represented by a A) movement up and to the left along the demand curve. B) movement down and to the right along the demand curve. C) leftward shift of the demand curve. D) rightward shift of the demand curve. I A change in which of the following alters buying plans for cars but does NOT shift the demand curve for cars? A) a 10 percent decrease in the price of car insurance B) a 20 percent increase in the price of a car C) a 5 percent increase in people's income D) an increased preference for walking rather than driving Which of the following would NOT shift the demand curve for turkey? A) a change in tastes for turkey B) a decrease in the price of ham C) an increase in income D) a change in the price of a turkey When we say demand increases, we mean that there is a A) movement to the right along a demand curve. B) movement to the left along a demand curve. C) leftward shift of the demand curve. ") rightward shift of the demand curve.A normal good is a good for which A) there are very few complements. B) demand decreases when income increases. C) demand increases when income increases. D) there are few substitutes. Most goods A) have vertical demand curves. B) have vertical supply curves. C) are normal goods. D) are complements to each other. A normal good is a good for which demand A) increases when income increases. B) decreases when population increases. C) increases when population increases. D) decreases when income increases. Inferior goods are those for which demand increases as A) income decreases. B) income increases. C) the price of a substitute rises. D) the price of a substitute falls. By definition, an inferior good is a A) normal substitute good. B) good for which demand decreases when its price rises. C) want that is not expressed by demand. D) good for which demand decreases when income increases. If a good is an inferior good, then purchases of that good will decrease when A) the demand for it increases. B) population increases. C) income increases. D) the price of a substitute rises. An inferior good is a good for which demand A) increases when population increases. B) decreases when income increases. C) decreases when population increases. D) increases when income increases. When economists speak of preferences as influencing demand, they are referring to A) the availability of a good to all income classes. B) directly observable changes in prices and income. C) the excess of wants over the available supplies. D) an individual's attitudes toward goods and services. In 2000 there were 200,000 gas grills demanded at a price of $500. In 2001 there were more than 200,000 gas grills demanded at the same price. This increase could be the result any of the following EXCEPT A) an increase in the supply of gas grills. B) an increase in population. C) an increase in income if gas grills are a normal good. D) a fall in the price of natural gas, a complement for a gas grill.The demand for a good increases when the price of a substitute and also increases when the price of a complement A) falls; falls B) rises; falls C) rises; rises D) falls; rises A complement is a good A) used in conjunction with another good. B) used instead of another good. C) of lower quality than another good. D) of higher quality than another good. Suppose people buy more of good 1 when the price of good 2 falls. These goods are A) substitutes. B) inferior. C) normal. D) complements. As the opportunity cost of a good decreases, people buy A) more of that good but less of its complements. B) less of that good and also less of its complements. C) less of that good but more of its complements. D) more of that good and also more of its complements. People come to expect that the price of a gallon of gasoline will rise next week. As a result, A) next week's supply of gasoline decreases. B) the price of a gallon of gasoline falls today. C) today's supply of gasoline increases. D) today's demand for gasoline increases. The demand curve for a normal good shifts leftward if income or the expected future price A) decreases; falls B) increases; rises C) increases; falls D) decreases; rises If income increases or the price of a complement falls, A) the supply curve of a normal good shifts leftward. B) the supply curve of a normal good shifts rightward. C) the demand curve for a normal good shifts rightward. D) the demand curve for a normal good shifts leftward. If income decreases or the price of a complement rises, A) there is an upward movement along the demand curve for the good. B) there is a downward movement along the demand curve for the good. C) the demand curve for a normal good shifts leftward. D) the demand curve for a normal good shifts rightward. Normal goods are those for which demand decreases as A) the price of a substitute falls. B) the price of a complement falls. C) the good's own price rises. D) income decreases.) CD players rise in price while pre-recorded audio tapes fall in price. The combined effect of these two changes is to create A) a leftward shift of the demand curve for portable audio tape players, such as a Walkman. B) a rightward shift of the demand curve for portable audio tape players, such as a Walkman. C) a rightward shift of the supply curve for portable audio tape players, such as a Walkman. D) a leftward shift of the supply curve of portable audio tape players, such as a Walkman. Walkman Watch expects a recession to occur. Knowing that a Walkman is a normal good, you predict that the demand for a Walkman A) will increase. B) might increase or decrease. C) will decrease. D) will remain unchanged. Wages for workers producing Walkmans and similar products will rise next year. Walkman Watch asks you to predict the effect of this change in next year's market for Walkmans. You predict that the major effect will be that the A) demand curve for a Walkman will shift leftward. B) supply curve for a Walkman will shift rightward. C) supply curve for a Walkman will shift leftward. D) demand curve for a Walkman will shift rightward. Producers of Walkmans are able to lower the wage rate that they pay to their workers. Walkman Watch asks you to predict the effect on the Walkmans, You predict that the A) quantity supplied will decrease. B) price will rise. C) supply curve will shift leftward. D) supply curve will shift rightward. The wage rate paid by Walkman producers falls and at the same time the price of raw materials used in the production of Walkmans rises. You predict that the supply curve of Walkmans will A) surely shift leftward. B) surely become steeper. C) shift either leftward or rightward. D) surely shift rightward. Walkmans play cassette tapes. Producers of Walkmans expect that a new technology for producing CD players will be available next year. Walkman Watch asks you to predict the effect of the new technology on the market for Walkmans. You predict that A) the demand curve for Walkmans will shift leftward and the price will fall. B) the price will rise, and so will the quantity demanded. C) the price will fall, and the quantity demanded will increase. D) the demand curve for Walkmans will shift rightward and the price will rise. Producers of Walkmans will be able to lower the wage rate that they pay to their workers. Walkman Watch asks you to predict the effects on the supply of Walkmans, and the price of a Walkman. You predict that the supply curve shifts A) leftward, and the price is constant. B) rightward, and the price falls. C) leftward, and the price rises. D) rightward, and the price is constant