Demand & Supply

Which of the following would shift the demand curve for gasoline to the right?

An increase in consumer income, assuming gasoline is a normal good

Which of the following is not a characteristic of a perfectly competitive market?

There are few buyers and sellers.

Assume Zima buys notebooks in a competitive market. It follows that

Zima cannot influence the price of notebooks even if she buys a large quantity of them.

When we move along a given demand curve,

all nonprice determinants of demand are held constant.

When we move along a given supply curve,

all nonprice determinants of supply are held constant.

If a seller in a competitive market chooses to charge more than the going price, then

buyers will make purchases from other sellers.

When the quantity demanded has increased at every price, it might be because

complementary goods

Suppose you like to make, from scratch, pies filled with bananas and vanilla pudding. You notice that the price of bananas has increased. As a result, your demand for vanilla pudding would

decrease

Two goods are substitutes when a decrease in the price of one good

decreases the demand for the other good

If the number of buyers in a market decreases, then

demand decreases

Soup is an inferior good if the demand

for soup falls when income rises.

Which of the following events could cause an increase in the supply of ceiling fans?

increase # sellers

Warrensburg is a small college town in Missouri. At the end of August each year, the market demand for fast food in Warrensburg

increases

Two goods are complements when a decrease in the price of one good

increases the demand for the other good.

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

is unaffected, and the supply of tires could increase, decrease, or stay the same.

A competitive market is a market in which

no individual buyer or seller has any significant impact on the market price.

lose your job and, as a result, you buy fewer iTunes music downloads.

normal good

A supply schedule is a table that shows the relationship between

price and quantity supplied

Which of the following is not held constant in a supply schedule?

price of a good

If Jelani expects to earn a higher income next month, he may choose to

save less now and spend more of his current income on goods and services.

A monopoly is a market with one

seller, and that seller sets the price

The market supply curve

shows the total quantity supplied at all possible prices.

If the number of sellers in a market increases, then the

supply in that market will increase.

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

supply of bicycles will shift to the left.