Along a given demand curve, a decrease in supply will typically

Along a given demand curve, a decrease in supply will typically
 a. decrease price, but the change in quantity could be in either direction
  b. increase price and decrease the quantity
  c. decrease price but leave quantity unchanged
  d. decrease both quantity and price
  e. increase both quantity and price

QUESTION 2

In the market for chewing gum, the current price is 50 cents per pack and 100,000 packs are sold. Which of the following events would lead to a new equilibrium price of 60 cents and quantity of 90,000 packs?
 a. an increase in the price of other kinds of candy
  b. an increase in the price of the ingredients used to make chewing gum
  c. a decrease in the number of young people in the population
  d. an agreement by workers in the chewing gum industry to work for lower wages
  e. an increase in income

QUESTION 3

What is the effect of a reduction in the price of steel on the equilibrium price and quantity of automobiles?
 a. Both equilibrium price and equilibrium quantity rise.
  b. Both equilibrium price and equilibrium quantity fall.
  c. Equilibrium price rises and equilibrium quantity falls.
  d. Equilibrium price falls and equilibrium quantity rises.
  e. Both equilibrium price and equilibrium quantity remain unchanged.

QUESTION 4

Which of the following would shift the supply curve for CDs to the right?
 a. a decrease in the price of materials used to make CDs
  b. a rise in the cost of labor used to make CDs
  c. an increase in the price of audio cassettes
  d. a decrease in the number of suppliers
  e. an increase in the price of CDs

QUESTION 5

A decrease in the supply of chocolate chips would usually result in a
 a. higher equilibrium price and a lower equilibrium quantity
  b. lower equilibrium price and a lower equilibrium quantity
  c. lower equilibrium price and a higher equilibrium quantity
  d. higher equilibrium price and a higher equilibrium quantity
  e. decrease in the demand for chocolate chips

QUESTION 6

A new hormone will increase the amount of milk each cow produces. If this hormone is adopted by many dairies, what will be the effect on the milk market?
 a. an increase in supply, higher equilibrium price, and lower equilibrium quantity
  b. a decrease in supply, lower equilibrium price, and lower equilibrium quantity
  c. an increase in supply, lower equilibrium price, and higher equilibrium quantity
  d. an increase in supply, higher equilibrium price, and higher equilibrium quantity
  e. a decrease in supply, lower equilibrium price, and higher equilibrium quantity

QUESTION 7

An increase in supply will cause a(n)
 a. increase in demand
  b. decrease in demand
  c. increase in quantity demanded
  d. decrease in equilibrium quantity demanded
  e. increase in equilibrium price