Chapter 3

If the demand curve for good $X$ is downward sloping, an increase in the price will result in a. an increase in the demand for good $X$ b. a decrease in the demand for good $X$ c. no change in the quantity demanded for good $X$ d. a larger quantity demanded for good $X$ e. a smaller quantity demanded for good $X$.

The law of demand states that the quantity demanded of a good changes, other things being equal, when a. the price of the good changes. b. consumer income changes. c. the prices of other goods change. d. a change occurs in the quantities of other goods purchased.

Which of the following is the result of a decrease in the price of tea, other things being equal? a. A leftward shift in the demand curve for tea b. A downward movement along the demand curve for tea c. A rightward shift in the demand curve for tea d. An upward movement along the demand curve for tea

Which of the following will cause a movement along the demand curve for good $X$ ? a. A change in the price of a close substitute b. A change in the price of good $X$ c. A change in consumer tastes and preferences for good $X$ d. A change in consumer income

Assuming beef and pork are substitutes, a decrease in the price of pork will cause the demand curve for beef to a. shift to the left as consumers switch from beef to pork. b. shift to the right as consumers switch from beef to pork. c. remain unchanged, because beef and pork are sold in separate markets. d. none of the above.

Assuming coffee and tea are substitutes, a decrease in the price of coffee, other things being equal, results in a (an) a. downward movement along the demand curve for tea. b. leftward shift in the demand curve for tea. c. upward movement along the demand curve for tea. d. rightward shift in the demand curve for tea.

Assuming steak and potatoes are complements, a decrease in the price of steak will a. decrease the demand for steak. b. increase the demand for steak. c. increase the demand for potatoes. d. decrease the demand for potatoes.

An increase in consumer income, other things being equal, will a. shift the supply curve for a normal good to the right. b. cause an upward movement along the demand curve for an inferior good. c. shift the demand curve for an inferior good to the left. d. cause a downward movement along the supply curve for a normal good.

Yesterday, seller $A$ supplied 400 units of good $X$ at $\mathrm{\$}10$ per unit. Today, seller $A$ supplies the same quantity of units at $\mathrm{\$}5$ per unit. Based on this evidence, seller $A$ has experienced a (an) a. decrease in supply. b. increase in supply. c. increase in the quantity supplied. d. decrease in the quantity supplied. e. increase in demand.

An improvement in technology causes a (an) a. leftward shift of the supply curve. b. upward movement along the supply curve. c. firm to supply a larger quantity at any given price. d. downward movement along the supply curve.