Question

QUESTION 1

1. When the demand curve for coffee shifts to the left, which of the following outcomes is NOT expected to occur?

   	A.	Quantity supplied declines
   	B.	Equilibrium price declines
   	C.	Equilibrium price increases
   	D.	Quantity demanded declines

2 points   

QUESTION 2

1. If the equilibrium price for milk in the retail grocery market increases, then we know that:

   	A.	the retail milk demand curve shifts rightward
   	B.	the retail milk demand curve shifts leftward
   	C.	we move downwards along the retail milk demand curve
   	D.	we move upwards along the retail milk demand curve

2 points   

QUESTION 3

1. Suppose the US federal government increases the gasoline tax by 25 cents per gallon. What happens to the retail gasoline market in the US?

   	A.	Supply curve shifts rightward and price paid by buyers increases
   	B.	Supply curve shifts leftward and price paid by buyers increases
   	C.	Supply curve shifts leftward and price paid by buyers declines
   	D.	Supply curve shifts leftward and price paid by buyers declines

2 points   

QUESTION 4

1. Which of the following events would shift the demand curve for bottled water to the right?

   	A.	The prices of other bottled beverages declines
   	B.	New medical research indicates that bottled water can contain harmful chemicals
   	C.	Income increases and bottled water is a normal good
   	D.	Income increases and bottled water is an inferior good

2 points   

QUESTION 5

1. Suppose the population of Lexington, KY, increases. What happens to the retail market for food in Lexington?

   	A.	Supply curve shifts rightward
   	B.	Demand curve shifts rightward
   	C.	Supply curve shifts leftward
   	D.	Demand curve shifts leftward

Answer 1