Quiz 3

A decrease in the price of a particular good, with all other variables constant, causes

a movement along a given demand curve to a higher quantity demanded

If some piece of information causes buyers to expect the price of a good to rise in the future, but sellers take the same information and believe it will have no impact on price, the result is

an increase in demand today

Of the following, which is most likely to be a normal good

automobiles

The equilibrium price and quantity of a good, once attained, will

change only if either supply or demand changes

An increase in the price of gasoline will lead to a

decrease in the quantity of gasoline supplied

A decrease in supply results in an

increase in equilibrium price and a decrease in equilibrium quantity

An increase in demand coupled with a decrease in supply results in an

increase in equilibrium price and an ambiguous effect on equilibrium quantity

If the supply curve does not shift, an increase in demand results in an

increase in equilibrium price and an increase in equilibrium quantity

Holding everything else constant, as the price of natural gas rises, selling natural gas becomes

more profitable, and the quantity supplied rises