Application - Demand and Supply

If the price of chocolate increases, in the market for chocolate this will cause:

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

Automobiles are produced on assembly lines. If an advancement in technology makes assembly lines faster and more efficient, this will cause:

an increase in supply of automobiles -- a rightward shift of the supply curve for automobiles

Automobile firms can use their inputs to make hybrid cars or "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

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

Fried chicken and grilled chicken are substitutes. If the American Heart Association announces that eating fried chicken increases the risk of stroke, this will cause:

the demand for grilled chicken to increase -- a rightward shift of the demand curve for grilled chicken

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

Coffee and cream are complements. If the price of coffee increases, this will cause:

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

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