Which of the following would cause the demand curve of iPhones
to increase (i.e. shift)? Assume that iPhones are a normal
good.
A decrease in the cost of glass screens used to make smart
phones
An increase in Samsung Galaxy prices, where Samsung Galaxy is a
substitute for iPhones.
A decrease in the level of incomes for the average household
An increase in the supply for iPhones
What does a demand curve illustrate? What will cause a demand
curve to shift? Provide two examples from the automobile market
where the demand for automobiles expands.
What are the determinants of supply? Provide three examples
from the market for automobiles where the supply of automobiles
will contract (shift left).
How are the markets for automobiles and gasoline related? What
would happen to the market for automobiles if the consumer price of
gasoline rose?
Explain the term Opportunity Cost. What...
Which of the following situations would cause a shift in the
demand curve, as opposed to a change in the quantity demanded?
Vegetable prices rise as the majority of the population no
longer eats meat.
Auto sales increase due to increased employment.
Gasoline consumption decreases as the taxes included in the
price of gasoline increase.
Both A and B.
Which of the following would cause a definite leftward shift of
the supply curve?
an increase in the cost of an input and an expectation by firms
of a lower price
an increase in the price of a complement in production and a
decrease in the cost of an input
an increase in taxes and an increase in the number of firms
an increase in the price of a substitute in production and a
decrease in productivity
1. which of the following would cause a definite leftward shift
of the demand curve?
a) an expectation by consumers of a lower price and an increase
in the price of a compliments
b) an expectation by consumers of lower income and an increase
in the price of a substitute
c) a decrease in the number of consumers and a decrease in
income (assume inferior good)
d) a decrease in income and a positive change in consumer
tastes
2. When...