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Practice test 3 - The price of chicken has increased from...

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Sheet1 Page 1 The price of chicken has increased from $1.50 to $2.00 per pound because a poultry disease caused a decrease in the suppl Correct Answer: The demand for fish will increase. A leftward shift of the entire demand curve could be the result of Correct Answer: all of the above. If beans are inferior goods, a decrease in income will Correct Answer: shift the demand curve for beans to the right. In regard to supply, economics teaches us that Correct Answer: in order to get producers to provide more of a good, it is necessary to offer them a higher price. A rightward shift of an entire supply curve Correct Answer: all of the above. Demand for ice cream falls because of cold weather, but the supply increases because new firms have entered the market. W Correct Answer: Price will fall A rightward shift of an entire supply curve Correct Answer: all of the above. Changes in the quantity demanded caused by changes in price are Correct Answer: movements along an existing demand curve. In a market, Correct Answer: price and quantity are determined together. If beans are inferior goods, a decrease in income will Correct Answer: shift the demand curve for beans to the right. Assume that the demand curve for romance novels has a negative slope. If the price of these novels increases from $4.25 to Correct Answer: the quantity demanded will decrease. Changes in the quantity demanded caused by changes in price are Correct Answer: movements along an existing demand curve. Which of the following goods is most likely to be an inferior good, regardless of the income of an individual? Correct Answer: Potatoes. An analysis of themarket for Good X shows that the price of a complement, Good Y, is declining. At the same time, there is a Correct Answer: Equilibrium quantity will rise, and the change in equilibrium price cannot be predicted. It may rise, fall, or sta Substitute goods are goods that are Correct Answer: used in place of one another. When price changes, one should expect a change in Correct Answer: quantity supplied. The law of demand states that Correct Answer: a smaller quantity will be demanded at higher prices than at lower prices and there is a negative relationshi If an individual's income increases, then the demand for a normal good will
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Sheet1 Page 2 Correct Answer: increase. Which of the following affects demand for a good? Correct Answer: Income. When price changes, one should expect a change in Correct Answer: quantity supplied.
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