Demand and Supply McGraw Interactive

Tomatoes are an input in the production of salsa. If the price of tomatoes rises sharply, this will cause:

A decrease in the supply of salsa -- a leftward shift of the supply curve for salsa

Automobile firms can use their inputs to make hybrid cars of "regular" (non-hybrid) cars. If the equilibrium price of hybrid cars rises sharply, the resulting shift in the supply curve for "regular" cars will cause:

An increase in the equilibrium price of "regular" cars

French fries and ketchup are complements. If the American Heart Association announces that eating French Fries increases the risk of stroke, this would cause

Demand for ketchup to decrease -- a leftward shift of the demand curve for ketchup

Public transportation is an inferior good. If consumers' incomes decrease, this will cause:

Demand for public transportation to increase -- a rightward shift of the demand curve for public transportation

The market for blue jeans is in equilibrium. Blue jeans are a normal good for consumers. If a recession reduces consumers' incomes at the same time that the price of denim (an input in the making of blue jeans) increases, we can say with certainty that as a result:

The equilibrium quantity of blue jeans will decrease

If the price of chocolate increases, this causes

an upward movement (to the left) along the demand curve

An increase in the price of coffee causes

an upward movement (to the left; decrease in quantity demanded) along the demand curve for coffee

The fresh fruit market and frozen dinner market are currently in equilibrium. Fresh fruit is a normal good for consumers and frozen dinners are an inferior good. Given an upward sloping supply curve, if there is an economic boom that increases consumers' incomes, this will lead to:

An increase in the equilibrium price of fresh fruit