Micro ECON activities 5

I want to start with one of the easier questions under "Movement Along or Shifts" ...should I pick $100 or $200?

$200

Pizza and sub sandwiches are substitutes. If the price of pizza decreases, this will cause:

a decrease in demand - a left ward shift of demand curve - - for sub sandwich.

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 a decrease in supply of automobiles -- a leftward shift of the supply curve for automobiles

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

increases from $0.75 a pound to $1.00 per pound, in the market for bananas this will cause:

An upward movement ( to the left) along the demand curve.

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

Public transportation is an inferior good. If consumers' incomes decrease, this will cause:

demand for public transportation to increase

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:

increase in the equilibrium price of "regular" cars

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