An increase in the price of a good normally increases the
a. demand for its substitutes
b. supply of complements for the good
c. purchasing power of consumers' dollar incomes
d. money income of the consumer
e. quantity demanded of all goods that are unrelated to the good in question
QUESTION 2Which of the following events would increase the supply of tomatoes?
a. the introduction of mechanized tomato pickers, which raises the cost of production
b. an increase in wages for the tomato pickers
c. a decrease in the cost of fertilizer for the tomato plants
d. unseasonably hot, dry weather in the tomato-growing regions of the nation
e. a decrease in the price of pasta products
QUESTION 3Which of the following would shift the supply curve for a good to the left?
a. an increase in the price of that good
b. a decrease in the price of an alternative good
c. an improvement in technology for producing that good
d. an increase in the cost of an important resource used to make that good
e. an increase in the number of producers
QUESTION 4Which of the following will increase the supply of vanilla ice cream?
a. an increase in the price of vanilla beans (an ingredient in ice cream)
b. a decrease in the sales tax on restaurant bills
c. an increase in the price of chocolate ice cream
d. a decrease in the price of milk (an ingredient in ice cream)
e. an increase in the price of hot fudge
QUESTION 5Which of the following causes the supply of leather jackets to decrease?
a. an increase in the price of leather jackets
b. an increase in the price of leather
c. a decrease in the price of zippers
d. an increase in the number of motorcycles
e. a decrease in consumer income
QUESTION 6Recently it has been discovered that lobsters grown on lobster farms can feed on algae, which is a cheaper lobster food. As a result of this discovery,
a. the supply curve for lobster will shift to the left
b. the supply curve for lobster will shift to the right
c. there will be an increase in the quantity of lobsters supplied
d. there will be a decrease in the quantity of lobsters supplied
e. both supply and demand curves will shift to the right
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