Econ 1014 Exam 2 Study Guide

# An increase in supply causes the supply curve to

• Notes
• 7
• 100% (4) 4 out of 4 people found this document helpful

This preview shows page 2 - 3 out of 7 pages.

2) An increase in supply causes the supply curve to shift to the and is a decrease in the supply causes the supply curve to shift to the . a. Right; left b. Left; right c. Right; right d. Left; left e. None of the above. The direction of the shift is not predictable Unit 2: Section 7 Simultaneous Demand and Supply Changes 1) If you were planning a trip to Paris this year, you would find that air fares, hotel prices, and car rental prices are much lower if you travel from January to March than if you travel from June to August. Why is this? 2) If the demand for a product fell at the same time that the supply of the product ell, what would be the likely impact on the market for that product? 3) Suppose the price of gasoline in Columbia was \$1.28 on Friday but had risen to \$1.38 by the next Monday. Which of the following could account for this change in the market equilibrium price of gasoline? 4) Suppose gas prices risen to \$5 per gallon by the end of the year. Which of the following could we expect to happen? a) A reduction in demand for gasoline b) A shift in the demand for gasoline to the left c) A reduction in the quantity of gasoline demanded d) An increase in the supply of gasoline; a shift of the supply curve to the left e) A reduction in the supply of gasoline; a shift of the supply curve to the left Unit 2 Section 8: Price Elasticity of Demand

Subscribe to view the full document.

• Fall '08
• RYAN

{[ snackBarMessage ]}

###### "Before using Course Hero my grade was at 78%. By the end of the semester my grade was at 90%. I could not have done it without all the class material I found."
— Christopher R., University of Rhode Island '15, Course Hero Intern

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern