11.If hotdogs and mustard are complements, then a decrease in the price of hotdogs would cause:

a.the demand curve for mustard to shift to the left.

b.movement along the demand curve for hotdogs increasing the quantity demanded of

hotdogs.

c.the supply curve for mustard to shift to the right.

d.None of the above.

12.Pierre likes to eat french fries with either apple sauce or mayonnaise (but not both) on them. Thus, for Pierre, french fries and apple sauce are

__________________ while apple sauce and mayonnaise are _______________.

a.substitutes; complements.

b. substitutes in production; joint products.

c.joint products; substitutes.

d.complements; substitutes.

13.If coffee and tea are substitutes, then an increase in the price of coffee

would cause:

a.the demand curve for coffee to shift to the left.

b.movement along the demand curve for coffee increasing the quantity demanded of coffee.

c.the demand curve for tea to shift to the right.

d.both a and b.

e.None of the above.

14.If tea is a normal good and income increases, then we would expect:

a.movement along the demand curve for tea increasing the quantity demanded of tea.

b.the demand for tea to increase (the demand curve for tea shifts to the right).

c.the demand for tea to decrease (the demand curve for tea shifts to the left).

d.None of the above.

15.Crappy Motors Inc. produces two car models, Lemons and Wrecks, on its only production line. If more Lemons are produced, they take up more slots on the production line and fewer Wrecks can be produced. Lemons and Wrecks are ________________ . If the

price of Lemons increases, the supply curve of Wrecks will____________________.

a.joint products; shift to the right.

b.joint products; shift to the left.

c. substitutes in production; shift to the right.

d.None of the above.

16.Dead Cow Ranch (DCR) produces two joint products: ground beef and cowhide boots. If the price of ground beef increases, then we would expect:

a.DCR's supply curve of boots to shift to the right.

b.movement along DCR's supply curve of boots increasing the quantity supplied of boots.

c.DCR's supply curve of boots to shift to the left.

d.movement along DCR's supply curve of boots decreasing the quantity supplied of boots.

17.If the technology used to produce computers improves, then we would expect:

a.a decrease in the supply of computers (that is, the computer supply curve shifts to the

left).

b.movement along the computer supply curve increasing the quantity supplied of

computers.

c. movement along the computer supply curve decreasing the quantity supplied of

computers.

d. an increase in the supply of computers (that is, the computer supply curve shifts to the

right).

18.If the price of memory chips (a key component of computer production) decreases, then we would expect:

a.a decrease in the supply of computers (that is, the computer supply curve shifts to the

left).

b.movement along the computer supply curve increasing the quantity supplied of

computers.

c. movement along the computer supply curve decreasing the quantity supplied of

computers.

d. an increase in the supply of computers (that is, the computer supply curve shifts to the

right).

19.If computers and VCRs are substitutes in production, then an increase in the price of VCRs will cause:

a.a decrease in the supply of computers (that is, the computer supply curve shifts to the

left).

b.movement along the computer supply curve increasing the quantity supplied of

computers.

c. movement along the computer supply curve decreasing the quantity supplied of

computers.

d. an increase in the supply of computers (that is, the computer supply curve shifts to the

right).

20.Given an initial market equilibrium with a downward sloping market demand curve and an upward sloping market supply curve, if supply increases, which of the following is the most likely change in price and quantity needed to reach the new equilibrium?

a.9 Price, 9 Quantity.

b.9 Price, 8 Quantity.

c.8 Price, 9 Quantity.

d.8 Price, 8 Quantity.

e.Cannot determine from given information.

21.Given an initial market equilibrium with a downward sloping market demand curve and an upward sloping market supply curve, if supply decreases, which of the following is the most likely change in price and quantity needed to reach the new equilibrium?

a.9 Price, 9 Quantity.

b.9 Price, 8 Quantity.

c.8 Price, 9 Quantity.

d.8 Price, 8 Quantity.

e.Cannot determine from given information.

22. Given an initial market equilibrium with a downward sloping market demand curve and an upward sloping market supply curve, if demand decreases, which of the following is the most likely change in price and quantity needed to reach the new equilibrium?

a.9 Price, 9 Quantity.

b.9 Price, 8 Quantity.

c.8 Price, 9 Quantity.

d.8 Price, 8 Quantity.

e.Cannot determine from given information.

23.Given an initial market equilibrium with a downward sloping market demand curve and an upward sloping market supply curve, if demand increases, which of the following is the most likely change in price and quantity needed to reach the new equilibrium?

a.9 Price, 9 Quantity.

b.9 Price, 8 Quantity.

c.8 Price, 9 Quantity.

d.8 Price, 8 Quantity.

e.Cannot determine from given information.

24.Given an initial market equilibrium with a downward sloping market demand curve and an upward sloping market supply curve, if both demand and supply increase, which of the

following is the most likely change in price and quantity needed to reach the new equilibrium?

a.

9

Price, Quantity unable to determine.

b.

8

Price, Quantity unable to determine.

c.

Price unable to determine,

8

Quantity.

d.

Price unable to determine,

9

Quantity.

25.

Given an initial market equilibrium with a downward sloping market demand curve and an

upward sloping market supply curve, if

demand increases while supply decreases

, which of the

following is the most likely change in price a

nd quantity needed to reach the new equilibrium?

a.

9

Price, Quantity unable to determine.

b.

8

Price, Quantity unable to determine.

c.

Price unable to determine,

8

Quantity.

d.

Price unable to determine,

9

Quantity.

26.Given an initial market equilibrium with a downward sloping market demand curve and an upward sloping market supply curve, if both demand and supply decrease, which of the following is the most likely change in price and quantity needed to reach the new equilibrium?

a.9 Price, Quantity unable to determine.

b.8 Price, Quantity unable to determine.

c. Price unable to determine, 8 Quantity.

d.Price unable to determine, 9 Quantity.