Honors Economics Test 3 (September 23)

Glen Raven Mills uses nylon to make pantyhose and parachutes. If the price at which parachutes are sold decreases, then the supply curve for pantyhose:

Will shift to the right

Lipstick and eye shadow are complements. If the price of lipstick decreases, then the demand curve for eye shadow:

Will shift to the right

The price of green nail polish is expected to increase as Christmas approaches, so the demand curve for green nail polish today:

Will shift to the right

The demand curve will shift to the right for normal goods when:

Income increases

The demand curve will shift to the left for inferior goods when:

Incomes decrease

When the price of makeup increases, the quantity demanded of makeup decreases because:

Makeup is a normal good

An increase in demand means that:

More will be demanded at the same price as before

When market disequilibrium is caused by a price floor (like minimum wage):

Price is higher than equilibrium price & there is a surplus

When market disequilibrium is caused by a price ceiling (like rent control):

Price is lower than equilibrium price & there is a shortage

The supply curve is upward-sloping because higher prices induce:

Producers to supply more

If Coach's robotic technology is sabotaged by rival purse maker Marc Jacobs, the supply curve for Coach purses will:

Shift to the left

If there is an increase in the number of Louboutin shoe sellers, the supply curve fir Louboutin shoes will:

Shift to the right

If there is an increase in the population of girls, then the demand curve for high heels will:

Shift to the right

Buggy bumpers have recently soared in popularity. When that happened, the demand curve for buggy bumpers:

Shifted to the right

When the price of lumber increases, the supply of sawdust:

Shifts to the right

Dresses and skirts are substitutes. If the price of dresses decreases, the demand curve for dresses:

Will not move, movement will be down the demand curve

Lipstick and eye shadow are complements. If the price of eye shadow increases, then the demand curve for eye shadow:

Will not move, movement will be up the demand curve

Chanel can make either dresses or skirts. If the price at which she can sell dresses increases, then the supply curve for dresses:

Will not move; movement will be up the supply curve

Glen Raven Mills uses nylon to make pantyhose and parachutes. If the price at which parachutes are sold increases, then the supply curve for parachutes:

Will not move; movement will be up the supply curve

Chanel can make either dresses or skirts. If the price at which she can sell skirts increases, then the supply curve for dresses:

Will shift to the left

If the incomes of girls decrease, then the demand curve for high heels right now:

Will shift to the left

The Kiini company believes that at the end of the month it will be able to increase the price at which it sells bikinis. Therefore, the current supply curve for bikinis:

Will shift to the left