ECN-102: Introductory Microeconomics FINAL EXAM
A demand curve represents a. the marginal benefit of consumption b. the marginal cost of production c. the external benefit of consumption d. the external cost of production
a
A leftward shift in the demand curve is called a (an) a. decrease in demand b. decrease in quantity demanded c. increase in demand d. increase in quantity demanded
a
All of the following describe positive economics except a. describes "what ought to be" b. can be tested c. describes "what is" d. uses facts
a
An economy can produce various combinations of food and shelter along a production possibilities curve (PPC). First, increase the production of shelter along the PPC; then continue to shift more and more production to shelter. Which of the following will most likely happen to the opportunity cost of a unit of shelter? a. Opportunity cost will increase because as more and more shelter is produced, labor and capital that is highly productive at producing food is being shifted to shelter production ,and so more and more food is being given up to produce a unit of shelter. b. Opportunity cost is the amount of labor (but not capital) that is used to produce the extra shelter. c. Opportunity cost must stay constant if we are to stay on the production possibilities curve(PPC). d. Opportunity cost includes all options given up to produce shelter
a
Assume no price ceiling exists in a market. Then, a price ceiling is established below the market equilibrium. What would result? a. Shortage b. Equilibrium c. Surplus d. Exchange price
a
Because of scarcity, a. it is impossible to satisfy every desire and choices must be made b. the available supply of time, goods, and resources is greater than human wants c. every desire is fulfilled d. there are no limits on the economy's ability to satisfy unlimited wants
a
Consider the market for pineapples initially in equilibrium. Then a new study comes out indicating that eating pineapples lowers cholesterol while simultaneously there is a drought that causes a poor pineapple crop. As a result, equilibrium price __________ and equilibrium quantity ___________. a. will rise/ may rise, fall, or stay the same b. may rise, fall or stay the same; will rise c. will fall; may rise, fall, or stay the same d. may rise, fall or stay the same; will fall
a
If society allows firms to freely pollute the environment, which of the following is true? a. Market equilibrium output will be too high relative to the efficient output level. b. Market equilibrium output will be too low relative to the efficient output level. c. Market equilibrium output will be equivalent to the efficient output level. d. The efficient output level can be achieved by giving firms a subsidy for the pollution they generate.
a
If the cost of producing a good rises for sellers, how will this affect the market equilibrium for that good? a. Price will rise, and quantity will fall b. Price will fall, and quantity will rise c. Both price and quantity will rise d. Both price and quantity will fall
a
In the study of economics, investment means a. the accumulation of capital that is used to produce goods and services b. owning stocks and bonds c. the principle that the opportunity cost increases as the production of one output expands d. the effect of stock prices on the production possibilities curve
a
Opportunity cost a. represents the best alternative sacrificed for a chosen alternative. b. has no relationship to the various alternatives that must be given up when a choice is made in the context of scarcity. c. represents the worst alternative sacrificed for a chosen alternative. d. represents all alternatives not chosen
a
Points B and C lie on the PPC for an economy that produces various combinations of fish and bread. Point B represents 20 loaves of bread and 100 pounds of fish while point C represents 30 loaves of bread and 80 pounds of fish. The opportunity cost of producing 10 additional loaves of bread when the economy moves from point B to point C is a. the 20 pounds of fish that can no longer be produced. b. the 80 pounds of fish that are now being produced. c. the additional 10 loaves of bread that are now being produced. d. the 30 loaves of bread that are now being produced
a
Producer surplus measures the value between the actual selling price and the a. price sellers are willing to sell the product b. deadweight loss price c. lowest price sellers are willing to sell the product d. profit-maximization price
a
Suppose the average equilibrium monthly rental price of apartments and rooms in a college town has been steady at $600, but then the college expands enrollment from 10,000 to 12,000. Suddenly, there is a shortage of rental housing at the prevailing price of $600. Which of the following is most likely true? a. The shortage occurred because demand increased, and a new market equilibrium will feature higher rental prices and more rental units available on the market. b. The shortage occurred because supply increased, and a new market equilibrium will feature lower rental prices and fewer rental units available on the market. c. The shortage occurred because demand decreased, and a new market equilibrium will feature lower rental prices and fewer rental units available on the market. d. The shortage occurred because demand increased, and a new market equilibrium will feature higher rental prices and fewer rental units available on the market
a
Suppose the federal government provides wheat farmers with a price floor above the market equilibrium price of wheat, creating a surplus. Which of the following causes a reduction in the surplus of wheat? a. Elimination of the price floor b. An increase in the price of wheat c. A decrease in the demand for wheat d. An increase in the supply of wheat
a
Suppose two variables are directly related. If one variable rises, then the other variable: a. also rises b. falls c. remains unchanged d. reacts unpredicatably
a
The principle that the opportunity cost increases as the production of one output expands is the a. law of increasing opportunity cost b. law of demand c. law of supply d. law of increasing returns to scale
a
Under the law of demand, any increase in price will cause ________ in quantity demanded a. a decrease b. an increase c. no change d. constant change
a
Which of the following decreases supply in the market for pizza? a. Pizza shop employees successfully organize a union and negotiate a pay increase. b. The Surgeon General announces that eating pizza reduces the incidence of stomach cancer. c. Cheese prices drop because price supports for dairy farmers are removed. d. Some hot sandwich shops can also make and sell pizzas, and consumer demand for hot sandwiches declines sharply, reducing the profitability of producing hot sandwiches.
a
Which of the following is a type of economic analysis? a. Positive b. Resources c. Association d. None of the above is correct
a
Which of the following terms describes a good or service where users collectively consume benefits and there is no way to bar people who do not pay(free riders) from consuming the good or service ? a. Public good b. Private good c. Competitive good d. Rival good
a
Which of the following would cause a leftward shift in the relationship shown in Exhibit A-5? (graph shows downward sloping line, quantity of pizzas purchased on x-axis, price per pizza on y-axis) a. A fall in household incomes b. A fall in the price of pizza c. A fall in the quantity of pizza that people want to purchase d. All of the above would shift the line of the graph
a
Which word or phrase best completes the following sentence? Marginal analysis means evaluating _______ changes from a current situation. a. incremental b. infinite c. no d. maximum
a
A cost imposed on people other than the consumers of a good or service is a a. price floor b. negative externality c. positive externality d. price ceiling
b
A decrease in demand with the supply held constant leads to a(an) a. increased equilibrium price and an increased equilibrium quantity. b. decreased equilibrium price and a decreased equilibrium quantity. c. decreased equilibrium price and an increased equilibrium quantity. d. increased equilibrium price and a decreased equilibrium quantity.
b
A shortage occurs when a. the quantity supplied exceeds the quantity demanded b. price is below the equilibrium price c. price is at the equilibrium d. price is above the equilibrium
b
A supply curve represents a. the marginal benefit of consumption b. the marginal cost of production c. the external benefit of consumption d. the external cost of production
b
According to Exhibit A-5, what is the relationship between the price per pizza and the quantity of pizzas purchased? a. Direct b. Inverse c. Complex d. Independent (graph shows downward sloping line)
b
Combinations of goods outside the production possibilities curve (PPC) have which of the following characteristics? a. They are attainable today only if we employ all unemployed or underemployed resources b. They are not attainable given our existing stock of resources and technollogy c. They imply that some resources, such as labor, are unemployed or underemployed d. None of the answers are correct
b
Consider the market for pineapples initially in equilibrium. Then a new study comes out indicating that eating pineapples lowers cholesterol while simultaneously there is a drought that causes a poor pineapple crop. In this situation, demand will __________ and simultaneously supply will _____________. a. increase; increase b. increase; decrease c. decrease; increase d. decrease; decrease
b
Economic policies often face a trade-off between efficiency, or maximizing the size of the economic pie, and equity, which describes a. the ingredients used to make the pie b. how the pie is sliced c. who owns the pie d. all of the above
b
If a price ceiling is set at $10, and the equilibrium market price is $8, which price will consumers actually pay? a. $10 b. $8 c. $18 d. $2
b
If an economy can produce various combinations of food and shelter along a production possibilities curve (PPC), then if we increase the production of shelter along the PPC, which of the following is true? a. We also increase the production of food. b. We must decrease the production of food, and this forgone food production represents the opportunity cost of the increase in shelter .c. We cannot change the production of food. d. The concept of opportunity cost does not apply along PPC"
b
If there are external benefits for good X, which of the following is true? a. The socially efficient amount of good X can be achieved if society taxes consumers of good X. b. The socially efficient amount of good X can be achieved if society subsidizes consumers of good X. c. The socially efficient amount of good X will be equivalent to the free market equilibrium quantity. d. The socially efficient amount of good X does not exist
b
In a market with external costs such as pollution, the government may intervene to overcome market inefficiencies by a. paying a per unit subsidy to producers equal to the external cost per unit. b. imposing a per unit tax on producers equal to the external cost. c. regulating the market to require producers increase their production. d. enacting laws requiring consumers purchase more of the product.
b
Suppose X and Y are substitutes. If the price of Y increases, how will this change the market equilibrium for X? a. Both equilibrium price and quantity decline. b. Both equilibrium price and quantity rise. c. Equilibrium price declines, and equilibrium quantity rises. d. Equilibrium price rises, and equilibrium quantity falls.
b
Suppose the alternative uses of an hour of your time in the evening, ranked from best to worst, are (1) study economics, (2) watch two half-hour sitcoms, (3) play video games, and(4) jog around town. You can choose only one activity. What is the opportunity cost of studying economics for one hour given this information? a. Jogging around town b. Watching two half-hour TV sitcoms c. Playing video games d. The sum of watching two half-hour TV sitcoms, playing pool, and doing your laundry
b
Suppose the federal government imposes a price floor in the milk market at a price of $6 per gallon. If the market quantity demanded at $6 is 1 billion gallons, and market quantity supplied is 1.5 billion gallons, which of the following is true? a. There is a shortage of 500 million gallons of milk, and the federal government will buy 1 billion gallons to maintain the $6 price. b. There is a surplus of 500 million gallons of milk, and the federal government will buy these 500 million gallons to maintain the $6 price. c. There is a shortage of 500 million gallons of milk, and the federal government will buy an additional 500 million gallons to maintain the $6 price. d. There is a surplus of 1 billion gallons of milk, and the federal government will buy 1.5 billion gallons to maintain the $6 price
b
Suppose the state of California imposes a minimum wage of $20 per hour. In the entry-level labor market in California fast-food restaurants, the quantity of labor demanded at $20 per hour is 800,000, and the quantity of labor supplied is 1.2 million. Which of the following is true? a. There is a shortage of 800,000 workers in the labor market. b. There is a surplus of 400,000 workers in the labor market. c. There is a shortage of 400,000 workers in the labor market d. There is a surplus of 1.2 million workers in the labor market
b
The competitive equilibrium is efficient because at that level of output, a. the marginal benefit of consuming the last unit exchanged exceeds the marginal cost of producing it. b. the marginal benefit of consuming the last unit exchanged equals the marginal cost of producing it. c. the marginal benefit of consuming the last unit exchanged is less than the marginal cost of producing it. d. the cost of production is zero
b
The law of supply is the principle that the relationship between the price of a good and the quantity sellers are willing to offer for sale in a defined time period, ceteris paribus, is a. inverse. b. direct. c. no relationship. d. independent
b
Three different economies have made choices about the production of capital goods. Which of the following is most likely to produce the greatest growth in the production possibilities curve (PPC)? a. capital goods produced at the exact rate needed to replace worn-out capital b. greater production of capital goods than what is needed to replace worn-out capital c. less production of capital goods than what is needed to replace worn-out capital d. more production of consumption goods that replace worn-out capital
b
Which of the following best describes an entrepreneur? a. A person who works as an office clerk at a major corporation b. A person who combines the factors of production to produce innovative products c. A special type of capital d. Wealthy individuals who provide savings that stimulates the economy
b
Which of the following best illustrates the application of the model-building process to economics? a. On a Sunday morning talk show, two economists with differing political agendas argue about the best way to solve the Social Security problem. b. A labor economist notices that unemployment tends to be higher among teenagers than more experienced workers, develops a model, and gathers data to test the hypotheses in the model. c. A Ph.D. student in economics makes up data on the lumber market and develops a model for their dissertation that seems to be consistent with the data. d. Economists come to believe that some economic models are true simply because prominent leading economists say they are true
b
Which of the following causes the demand for veggie burgers to increase? a. A decline in the price of veggie burgers b. An increase in the price of tofu burgers, perceived as a substitute by veggie burger consumers c. An increase in the price of burger buns d. A technological innovation that lowers the cost of producing veggie burgers
b
Which of the following is NOT a type of economic analysis? a. Positive b. Resources c. Normative d. None of the above
b
Which of the following is the second step in the model-building process? a. Collect data and test the model b. Develop a model based on simplified assumptions c. Identify the problem d. Include all possible variables that affect the model
b
Which of the following results from an increase in the price of a one-week vacation at beach resorts on the coast of Mexico? a. An increase in the supply of bicycle tires inToledo, Ohio b. An increase in the demand for vacations at resorts on Caribbean islands c. An increase in the supply of vacation opportunities at resorts on the coast of Mexico d. A decrease in the demand for vacations at resorts on Caribbean islands
b
Which words best complete the following sentence? A rational decision maker always chooses the option for which marginal benefit is ______ marginal cost. a. less than b. equal to c. unrelated to d. more than
b
2. Which of the following correctly identifies the factors of production? a. The outputs generated by the production process transforming land, labor, and capital into goods and services b. Resources restricted to the land, such as natural resources that are unimproved by human economic activity c. Land (natural resources), labor (human capital, entrepreneurship), and capital(constructed inputs such as factories) d. Just labor and capital in industrialized countries, where natural resources are no longer used to produce goods and services
c
4. Which of the following is the best definition of economics? a. Economics is the study of how to manage corporations to generate the greatest return on shareholder investment. b. Economics is the study of how to manage city and county government to generate the greatest good to its citizens. c. Economics is the study of how society chooses to allocate its scarce resources. d. Economics is the study of how to track revenues and costs in a business"
c
A production possibilities curve shows the various combinations of two outputs that a. consumers would like to consume b. producers would like to produce c. an economy can produce d. an economy should produce
c
An economy can produce various combinations of food and shelter along a production possibilities curve (PPC). Suppose a technological innovation resulted in a new, higher-yielding crop that generated more bushels of grain for a given set of land, labor, and capital resources. If this innovation did not affect the productivity of shelter production, which of the following would be true? a. The PPC will shift outward equally along both axes of the graph. b. The PPC will rotate inward along the food axis, but will not shift on the shelter axis. c. The PPC will rotate outward along the food axis, but will not shift on the shelter axis .d. The PPC will not change"
c
An economy that invests in the education and training of workers today will likely see what happen to their PPC? a. it will become steeper b. it will. become flatter c. it will shift outward d. it will shift inward
c
An increased equilibrium price and a decreased equilibrium quantity result from a (an): a. decrease in demand b. increase in supply c. decrease in supply d. increase in demand
c
Consumer surplus measures the value between the price consumers are willing to pay and the a. producer surplus price b. deadweight gain price c. actual price paid d. preference price
c
If Sam is willing to pay $50 for one good X, $30 for a second, $20 for a third, $8 for a fourth, and the market price is $10. What is Sam's consumer surplus? a. $10 b. $40 c. $70 d. $100
c
If, in the current situation, no one is able to be better off without someone else being made worse off, then this situation is said to be a. equitable b. normative c. efficient d. effective
c
Market failure can best be described as a situation where markets do not result in a. a fair price. b. an exchange of goods and services. c. an efficient allocation of resources. d. an equilibrium
c
Suppose Tucker Inc. is willing to sell one gizmo for $10, a second gizmo for $15, a third for $20, and the market price is $25. What is Tucker Inc.'s producer surplus? a. $10 b. $15 c. $30 d. $50
c
Suppose each of the seven dwarfs buys four mugs of ginger ale per week from Snow White's café, when the price per mug is $2. If the seven dwarfs are the entire market demand for Snow White's ginger ale, which of the following is the correct value for market quantity demanded of ginger ale per week at a price of $2? a. 4 b. 8 c. 28 d. 7
c
Suppose the city of Arcata, California, imposes rent control so rents cannot exceed $1,000 per month on one-bedroom rental units. Suppose $1,000 had also been the equilibrium rental price in Arcata before a huge new apartment complex was built in the nearby town of McKinleyville, where rents are $800 per month. Which of the following is most likely true? a. There will be a shortage of rental housing in Arcata at the rent control price of $1,000 .b. There will be a lasting surplus of rental housing in Arcata after the new apartment complex is built in McKinleyville. c. The equilibrium rental price in Arcata will fall below $1,000; thus, rent control will not affect the rental market in Arcata. d. The equilibrium price of $1,000 per month in Arcata will not change."
c
Suppose the federal government imposes a new pollution tax of $0.01 per kilowatt-hour of electricity on coal-fired power producers. Which of the following describes how this tax will affect the market for electricity served by these power plants? a. Demand for electricity will decrease. b. Demand for electricity will increase. c. The supply of electricity will decrease. d. The supply of electricity will increase.
c
The ability of an economy to produce greater levels of output per time period is called a. positive economics b. negative economics c. economic growth d. the law of specialization
c
The law of demand is the principle that there is ___________ relationship between the price of a good and the quantity buyers are willing to purchase in a defined time period, ceteris paribus. a. a direct b. no c. an inverse d. an independent
c
Which of the following is NOT an example of market failure? a. Lack of competition b. Externalities c. Efficient equilibrium d. Public goods
c
Which of the following is an example of an organization using marginal analysis? a. A hotel manager calculating the average cost per guest for the past year b. A farmer hoping for rain c. A government official considering the effect of an increase in military goods production will have on the production of consumer goods d. A businessperson calculating economic profits
c
Which of the following represents positive economics? a. Policy X is fair b. Outcome Y is the best objective to achieve c. If policy X is followed, then outcome Y results d. All of the above are positive economic analyses
c
Which of the following terms describes a situation in which society is "doing the best it can" with its existing resources and technology? a. market failure b. externality c. efficiency d. public good
c
With an upward-sloping supply curve, which of the following is true? a. An increase in price results in a decrease in quantity supplied. b. An increase in price results in an increase in supply. c. A decrease in price results in a decrease in quantity supplied. d. A decrease in price results in an increase in supply."
c
3. Which of the following best describes the three fundamental economic questions? a. What to produce, when to produce, and where to produce b. What time to produce, what place to produce, and how to produce c. What to produce, when to produce, and for whom to produce d. What to produce, how to produce, and for whom to produce"
d
A curve that is derived by summing horizontally individual demand curves is called a. aggregate supply b. market supply c. aggregate demand d. market demand
d
A surplus occurs when a. the quantity demanded exceeds the quantity supplied b. price is below the equilibrium price c. price is at the equilibrium d. price is above the equilibrium
d
Because of scarcity, people must make choices, and each choice incurs a cost. The _____ cost is the next best alternative that was sacrificed when making that choice. a. financial b. money c. optional d. opportunity
d
Deadweight is the net loss of a. consumer surplus b. producer surplus c. disequilibrium surplus d. both a and b
d
Deadweight loss is the result of a. disequilibrium b. underproduction c. overproduction d. all of the above
d
If a production possibilities curve (PPC) has capital on the vertical axis and consumer goods on the horizontal axis, which of the following is true? a. There is a trade-off between emphasizing the production of capital today to benefit people today versus emphasizing the production of consumer goods today that will generate benefits in the future. b. Greater emphasis on the production of capital today leads to future inward shifts in the PPC, thus decreasing the wealth of people in the future. c. Greater emphasis on the production of consumer goods today leads to greater outward shifts in the PPC, thus increasing the wealth of people in the future. d. Greater emphasis on the production of capital today leads to greater outward shifts in the PPC, thus increasing the wealth of people in the future
d
If the quantity supplied exceeds the quantity demanded in a market, what is the result? a. deadweight loss b. inefficiency c. overproduction d. all of the above answers are correct
d
If, at a given level of production, a deadweight loss exists, then a. marginal benefit equals marginal cost. b. marginal benefit is greater than marginal cost. c. marginal benefit is less than marginal cost. d. either b or c.
d
In a efficient market, deadweight loss is a. maximum b. minimum c. constant d. zero
d
Suppose a consumer is willing to pay $20 for one good X, $10 for a second, and $5 for a third, and the market price is $4. What is the consumer surplus? a. $16 b. $6 c. $1 d. $23
d
Suppose seller X is willing to sell one good X for $5, a second good X for $10, a third for $16, a fourth for $25, and the market price is $20. What is seller X's producer surplus? a. $15 b. $20 c. $22 d. $29
d
The condition of scarcity a. cannot be eliminated b. prevails in poor economies c. prevails in rich economies d. all of the above are correct
d
What is used to illustrate an independent relationship between two variables? a. An upward-sloping curve b. a downward-sloping curve c. A hill-shaped curve d. A horizontal or vertical line
d
When an inverse relationship is graphed, the resulting line or curve is a. horizontal b. vertical c. upward-sloping d. downward-sloping
d
Which of the following causes a shortage to become larger? a. an increase in market price b. an increase in supply c. a decrease in demand d. a decrease in price
d
Which of the following describes the ceteris paribus assumption? a. If we increase the price of a good, reduce consumer income, and lower the price of substitutes and if quantity demanded is observed to fall, we know that the price increase caused the decline in quantity demanded. b. If the federal government increases government spending and the Federal ReserveBank lowers interest rates, we know that the increase in government spending caused unemployment to fall. c. If a company reduces its labor costs, negotiates lower materials costs from its vendors, and advertises, we know that the reduced labor costs are why the company's profits are higher. d. If we decrease the price of a good and observe that there is an increase in the quantity demanded, holding all other factors that influence this relationship constant.
d
Which of the following illustrates the concept of scarcity? a. More clean air is wanted than is available in large polluted metropolitan areas such as Mexico City. b. There is usually more than one use of your "free" time in the evening. c. There are many competing uses for the annual budget of your city, county, or state. d. All of the above are correct
d
Which of the following increases the supply of corn? a. The farm workers' union successfully negotiates a pay increase for corn harvest workers b. The Surgeon General announces that eating corn contributes to heart disease c. Congress and the president eliminate subsidies formerly paid to corn farmers d. Farmers who grow soybeans can also grow corn, and the price of soybeans drops by 75 percent
d
Which of the following is the last step in the model-building process? a. Collect data and test the model b. Develop a model based on simplified assumption c. Identify the problem d. Formulate a conclusion
d
Which of the following pairs is most likely to exhibit an inverse relationship? a. The amount of time you study and your grade point average b. People's annual income and their expenditure on personal computers c. Baseball players' salaries and their batting averages d. The price of a concert and the number of tickets that people purchase"
d
Which of the following reasons could explain why an economy would be operating inside its production possibilities curve (PPC)? a. Because shrinking population has reduced the number of productive workers in the economy b. Because technological innovations have increased the productivity of labor and capital c. Because damage to natural resources, such as damage caused by deforestation leading to erosion of topsoil, has shrunk the land resource d. Because of unemployment or underemployment of labor, perhaps due to discrimination against employing workers of a certain race or gender
d
Which of the following represents causality rather than correlation? a. In years that fashion dictates wider lapels on men's jackets, the stock market grows by at least 5 percent. b. Interest rates are higher in years ending with a 1 or a 6. c. Unemployment falls when the AFC champion wins the Super Bowl. d. Quantity demanded goes up when price falls because lower prices increase consumer purchasing power and because some consumers of substitute goods switch.
d
Which of the following results when too many resources are devoted to the production of a good? a. Penalties will be imposed by the government. b. The marginal benefit will exceed the marginal cost of the last unit exchanged. c. The marginal benefit will equal the marginal cost of the last unit exchanged. d. The marginal cost will exceed the marginal benefit of the last unit exchanged.
d
Which of the following would eliminate scarcity as an economic problem? a. Moderation of people's competitive instincts b. Discovery of new, sufficiently large energy reserves c. Resumption of steady productivity growth d. None of the above is correct
d
Which resource is NOT an example of capital a. Equipment b. Machinery c. Physical plants d. Stocks and bonds
d
Why don't competitive markets do a good job providing public goods? a. Because people do not receive benefits from public goods b. Because firms cannot produce enough goods to satisfy market demand c. Because public goods generate negative externalities and pollution taxes reduce the incentive for firms to supply public goods d. Because it is difficult to exclude people from gaining benefits from public goods without paying for them, so market demand does not reflect the benefits to society from the public good
d
A production possibilities curve is drawn based on which of the following assumptions? a. Resources are fixed and fully employed, and technology advances at the rate of growth of the economy overall. b. Resources will decline, but labor remains fully employed and technology is unchanged. c. Resources can vary; most resources experience times of unemployment; and technology advances, particularly during wartime. d. Resources such as labor and capital will grow and are fully employed, and technology is unchanged. e. None of the answers correct
e
Deadweight loss results from a. equilibrium b. underproduction c. overproduction d. none of the above e. either b or c
e
There is news that the price of Tucker's Root Beer will increase significantly next week. If the demand for Tucker's Root Beer reacts only to this factor and shifts to the right, the position of this demand curve has reacted to a change in a. tastes. b. income levels. c. the prices of related goods. d. the number of buyers. e. expectations.
e