Questions:
Changes in Demand and Supply
1. There is a decrease in the price of a pair of blue jeans. What effect would this have on the demand curve for blue jeans?
2. There is a decrease in consumer incomes. As a result of this decrease in consumer incomes, the demand curve for smart phones shifts to the left. In other words, there is a decrease in the demand for smart phones. On the basis of this information, what can we say about the market for smart phones?
3. Assume that apples and bananas are substitutes. There is an increase in the price of apples. As a result, what will happen in the market for bananas?
4. Which of the following will lead to an increase in the demand for ibuprofen (i.e., a rightward shift in the demand for ibuprofen)?
5. Assume that peanut butter and jelly are complements. The price of peanut butter decreases. As a result of the increase in the price of peanut butter, what will happen in the market for jelly?
6. Assume that diamond earrings are a normal good. There is an increase in consumer incomes. As a result of the increase in incomes, what will happen in the market for diamond earrings?
7. Silk is an important input in the production of silk neckties. There is an increase in the price of silk. As a result of the increase in the price of silk, what happens in the market for silk neckties?
8. Which of the following will lead to a decrease in the demand for print cartridges (i.e., a leftward shift in the demand curve for print cartridges)?
9. Which of the following would be expected to shift the supply curve for hand sanitizer to the right?
10. As a result of a hurricane, several refineries are damaged, and are temporarily unable to produce gasoline. Thus it could be said that the technology of producing gasoline has deteriorated. This could be characterized as
11. Buyers come to believe that the price of kumquats will increase one week from today. What will this do to the market for kumquats this week?
12. Milk is an important input in the production of butter. There is a decrease in the price of milk. As a result of the decrease in the price of milk, what will happen in the market for butter?
13. Fezmicks are an inferior good. There is an increase in the incomes of fezmick consumers. As a result, what will happen in the market for fezmicks?
14. Which of the following would be expected to shift the supply curve for cellular phones to the left?
15. The price of good A decreases. As a result, the demand for good B increases (i.e., the demand curve for good B shifts to the right). On the basis of this information, what can we say about good A and good B?
16. The price of good X increases. As a result, the supply for good Y decreases (i.e., the supply curve for good Y shifts to the left). On the basis of this information, what can we say about good X and good Y?
17. A new technology makes it possible to produce more flat-screen televisions, without using any more inputs. As a result of this technological improvement, what will happen in the market for flat-screen televisions?
18. In Lower Slobbovia, the price of a zizwomp is $10. But then the government of Lower Slobbovia issues a law saying that it is illegal to buy or sell zizwomps for more than $5. The government of Lower Slobbovia is well known for its brutality, and it is generally believed that anyone caught violating the law will be shot. As a result of this price control, what will happen in the market for zizwomps in Lower Slobbovia?
19. The price of good J decreases. As a result, the demand for good K decreases (i.e., the demand curve for good K shifts to the left). On the basis of this information, what can we say about good J and good K?
20. In Spartyland, there are 10 taco restaurants. Now, 5 new taco restaurants open. As a result of the increase in the number of sellers, what happens in the market for restaurant tacos in Spartyland?