If goods A and B are substitutes, a decrease in the price of good B will:
answer
decrease the demand for good A.
question
If the demand for tires goes down when the price of gas goes up, then tires and gas are:
answer
complements.
question
Assuming that desktop computers are normal goods, which of the following will NOT increase demand for desktop computers?
answer
a very large computer company going out of business.
question
A leftward shift of a supply curve is caused by:
answer
an increase in the cost of an input.
question
If the supply and demand curves intersect at $47, then any price above that would result in:
answer
a surplus.
question
For consumers, pizza and hamburgers are substitutes. A rise in the price of a pizza causes ______ in the equilibrium price of a hamburger and ______ in the equilibrium quantity of hamburgers.
answer
a rise; an increase
question
Consider two competing motorcycle manufacturers, Harley-Davidson and Honda. If Harley-Davidson raises the price of its motorcycles, we can expect:
answer
a shift to the right in the demand curve for Hondas and higher prices for Hondas.
question
An increase in supply with no in demand will lead to ______ in equilibrium quantity and ______ in equilibrium price.
answer
an increase; a decrease
question
A decrease in demand and a decrease in supply will lead to ______ in equilibrium quantity and _____ in equilibrium price.
answer
a decrease: an indeterminate change
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