7/21/2019 Qcm Demand and Supply

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The law of demand states that changes inC. the quantity demanded of a good are inversely related to changes in its price.

In 2008 there were 200000 gas grills demanded at a price of !"00. In 200# there were morethan 200000 gas grills demanded at the same price. This increase could $e the result any of

the following %&C%'T(. an increase in the supply of gas grills.

)hich of the following shifts the supply curve for gasoline rightward*C. a decrease in the price of a resource used to produce gasoline such as crude oil

)hich of the following would result in a movement along $ut not a shift of the supply curvefor spinach*+. ( rise in the price of spinach.

In 200, the price of a used Toyota 'rius increased. The most li-ely cause of this change was

C. a change in preferences in favor of alternative fuel cars.

)hen the price is $elow the equili$rium price the quantity demanded. e/ceeds the equili$rium quantity $ut the quantity supplied is less than the equili$riumquantity.

In a mar-et at the equili$rium price(. neither $uyers nor sellers can do $usiness at a $etter price.

Throughout the ##0s the price of sport utility vehicles 134s5 rose and each year more werepurchased. This e/perience suggests that. there must have $een a rightward shift of the demand curve for 34s.

uring the past twenty years the prices of prescription drugs relative to the prices of othergoods have risen yet (mericans $uy more prescription drugs than ever. This might $e

$ecause+. with higher incomes and more older (mericans the demand curve for prescription drugshas shifted rightward.

In 2008 the average +ig 6ac costs !2.8,. %nergy costs account for "7 cents of the total cost1)ired magaine 9ovem$er 20085. The price of energy fell in late 2008 so there was

:::::::: in supply which resulted in a :::::::: in the price of +ig 6acs.+. an increase; fall