Problem Set 1 - Economics 304K Spring 2008 Problem Set 1...

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Economics 304K: Spring 2008 Helen Schneider Problem Set 1 SOLUTIONS Part I. Multiple Choice 1. Which of the following will increase (shift to the right) the demand for large automobiles? a. A fall in the price of small automobiles. b. A fall in the price of large automobiles. c. A fall in the price of gasoline. d. A fall in buyers' incomes. e. A fall in consumer preferences for driving large automobiles. 2. Which of the following would result in a change in the quantity demanded? a. A shift in the supply curve. b. A change in tastes. c. An increase in population. d. A change in income. e. An increase or decrease in the price of a substitute or complement. 3. If the insect pests destroy much of America’s wheat crop this year, which of the following is likely to happen? a. a movement up and to the left of the supply curve for wheat bread. b. greater demand for rye bread. c. a movement along the demand curve for wheat. d. higher prices for wheat bread.
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Problem Set 1 - Economics 304K Spring 2008 Problem Set 1...

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