Econ 4

If the economy goes into a recession and incomes fall, what happens in the market for inferior goods? a. Prices and quantities both rise b. Prices and quantities both fall c. Prices rise, quantities fall d. Prices fall, quantities rise

a. Prices and quantities both rise

The discovery of a large new reserve of crude oil will shift the ___ curve for gasoline, leading to a ___ equilibrium price. a. Supply, higher b. Supply, lower c. Demand, higher d. Demand, lower

b. Supply, lower

An increase in ___ will cause a movement along a given demand curve, which is also called a change in ___. a. Supply, demand b. Supply, quantity demanded c. Demand, supply d. Demand, quantity supplied

b. Supply, quantity demanded

A change in which of the following will NOT shift the demand curve for hamburgers a. The price of hot dogs b. The price of hamburgers c. The price of hamburger buns d. The income of hamburger consumers

b. The price of hamburgers

Which of the following might lead to an increase in the equilibrium price of jelly and a decrease in the equilibrium quantity of jelly sold? a. an increase in the price of peanut butter, a complement to jelly b. an increase in the price of Marshmallow Fluff, a substitute for jelly c. an increase in the price of grapes, an input to jelly d. an increase in consumers' incomes, as long as jelly is a normal good

c. An increase in the price of grapes,, an input to jelly

Movie tickets and DVDs are substitutes. If the price of DVDs increases, what happens in the market for movie tickets? a. The supply curve shifts to the left b. The supply curve shifts to the right c. The demand curve shifts to the left d. The demand curve shifts to the right

d. The demand curve shifts to the right