Question 1

Suppose a recent and widely circulated medial article has reported new benefits of cycling for exercise. At the same time, the price of a type of plastic needed to manufacture bicycles increases. What would we expect to happen to the price of bicycles?

price will initially decrease, but will eventually increase

as the supply curve shifts

price will decrease

the price could increase or decrease, depending on the

relative size of the shift in the demand curve versus the shift in the supply

curve

price will increase

Question 2

Peanuts are the main ingredient in peanut butter, and peanut

butter and jelly are complements.If the price of peanuts increase, and at

the same time the price of jelly increases, how would these changes affect the

market for peanut butter?

the demand curve will shift right; the supply curve will

shift right

the demand curve will shift left; the supply curve will shift

right

the demand curve will shift right; the supply curve will

shift left

the demand curve will shift left; the supply curve will shift

left

Question 3

A decrease in quantity demanded

results in a movement upward and to the left along a fixed

demand curve.

shifts the demand curve to the left.

shifts the demand curve to the right.

results in a movement downward and to the right along a fixed

demand curve.

Question 4

Saddle shoes are not popular right now (let's assume for this

question), so very few are produced.If saddle shoes become popular, then

how will this affect the market for saddle shoes?

Group of answer choices

The demand curve for saddle shoes will shift right, which

will create a shortage at the current price. That will increase price, which

will decrease quantity demanded and increase quantity supplied. The new market

equilibrium will be at a higher price and higher quantity.

The supply curve for saddle shoes will shift right, which

will create a shortage at the current price. That will increase price, which

will decrease quantity demanded and increase quantity supplied. The new market

equilibrium will be at a higher price and higher quantity.

The demand curve for saddle shoes will shift right, which

will create a surplus at the current price. That will decrease price, which

will increase quantity demanded and decrease quantity supplied. The new market

equilibrium will be at a lower price and higher quantity.

The supply curve for saddle shoes will shift right, which

will create a surplus at the current price. That will decrease price, which

will increase quantity demanded and decrease quantity supplied. The new market

equilibrium will be at a lower price and higher quantity.

Question 5

During the last few decades in the United States, health

officials have argued that eating too much beef might be harmful to human

health.As a result, there has been a significant decrease in the amount

of beef produced.Which of the following best explains the decrease in

production?

Group of answer choices

Individual consumers, concerned about their own health,

decreased their demand for beef, which lowered the equilibrium price of beef,

making it less attractive to produce.

Anti-beef protesters have made it difficult for both buyers

and sellers of beef to meet in the marketplace.

Government officials, concerned about consumer health,

ordered beef producers to produce relatively less beef.

Beef producers, concerned about the health of their

customers, decided to produce relatively less beef.