Because cars and gasoline are complements, an increase in the price of gasoline will
A. a. increase the demand for cars.
B. b. decrease the demand for cars.
C. c. increase the demand for gasoline.
D. d. decrease the demand for gasoline.
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A change in which of the following will cause a movement along the supply curve?
A. a. a change in the state of technology
B. b. a change in taxes
C. c. a change in expectations about future prices
D. d. a change in the price of the good
1) If the price of oil, a close substitute for coal, increases, then
A. a. the supply curve for coal will shift to the right.
B. b. the demand curve for coal will shift to the right.
C. c. the equilibrium price and quantity of coal will not change.
D. d. the quantity of coal demanded will decline.
2) Identify which one of the following is a normative statement:
A. a. the high temperature today was 35 degrees.
B. b. it was hotter today than yesterday.
C. c. a kilogram of shrimp is more expensive than a kilogram of potato in the supermarket.
D. d. shrimp is more delicious than potato.
3) A shift in the supply curve of bicycles that results from higher steel prices will lead to
A. a. higher prices.
B. b. lower prices.
C. c. a shift of the demand curve.
D. d. larger output.
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