Question

An increase in the current price of tires causes

A-	a movement up and to the left along the current tire demand curve.

B- None of these.

C- a movement up and to the left along the current tire demand curve andthe whole current tire demand curve to shifts left.

D- the whole current tire demand curve shifts left.

An increase in the expected future price of tires causes

A- a movement up and to the left along the current tire demand curve and a <br /> leftward shift of the whole current tire demand curve.

B- a movement up and to the left along the current tire demand curve.

C- a rightward shift of the whole current tire demand curve.

D- None of these.

Consider the market for corn grown in the US. If corn harvests fail in Mexico, how is that likely to impact the market for corn grown in the US?

A- The supply of US-grown corn will shift right.

B- The supply of US-grown corn will shift left.

C- The demand for US-grown corn will shift left.

D- The demand for US-grown corn will shift right.

Crude oil is used to make to make diesel. Suppose crude oil prices rise. How will this affect supply and demand in the market for diesel?

A- None of these.

B- Both the demand and supply curves for diesel will shift left.

C- The supply curve for diesel will shift left.

D- The demand curve for diesel will shift left.

When there is a decrease in the overall level of demand and an increase in the overall level of supply,

A- we know quantity falls, but can't predict the impact on prices.

B- we know price falls, but can't predict the impact on quantity.

C- we know quantity rises, but can't predict the impact on prices.

D- we know price rises, but can't predict the impact on quantity.

Answer 1

1- demand curve shows the negative relation between the prices and the quantity demanded in the economy,

so any change in prices will lead to a movement along the demand curve, so increase in prirces will lea to an upward movement along the demand curve. so answer is "C"

2- Increase in expected future prices of tires means that the demans for tires will increase in the present, thus there will be a rightward shift in demand curve to the right.

so the answer is C

3- due to the failure of corn crop in mexico there will be higher demand for u.s grown crops in mexico so as to meets the need of the eople in mexic thus the demand curve for u.s geown crops will shift right.

so answer is D

4- answer here is c,

as the prices of curde oil rises the prices of the raw material for diesl rises,means that the supply curve for diesel will shift to left and there will be a upward movement long the demand curve.

so answer is c