A) supply increases.

B) supply decreases.

C) quantity supplied increases.

D) quantity supplied decreases.

E) price falls to restore the equilibrium.

31) People come to expect that the price of a gallon of gasoline will rise next week. As a result,

A) today's supply of gasoline increases.

B) today's demand for gasoline increases.

C) the price of a gallon of gasoline falls today.

D) next week's supply of gasoline decreases.

E) today's demand for gasoline and today's supply of gasoline do not change.

32) Because of a sharp increase in the price of gasoline, the demand for Sports Utility vehicles (SUVs) has decreased. So, the high price of gasoline leads to a

A) leftward shift of the demand curve for SUVs and the supply curve of SUVs.

B) leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs.

C) leftward shift of the demand curve for SUVs and a rightward shift of the supply curve of SUVs.

D) leftward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.

E) rightward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.

33) Suppose that the equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change?

A) The wage paid carpenters who build new houses might have risen.

B) A technological advance in framing a new house might have occurred.

C) The rent for nearby apartments might have fallen.

D) More home buyers might have moved into the area.

E) The cost of wood framing used to build houses might have fallen

34) As a falling price eliminates a surplus in the jersey market,

A) the demand curve for jerseys shifts leftward and the supply curve of jerseys shifts rightward.

B) consumers increase the quantity of jerseys they demand.

C) producers increase the quantity of jerseys they supply.

D) producers decrease the quantity of jerseys they supply and buyers decrease the quantity of jerseys they demand.

E) the demand curve for jerseys shifts rightward and the supply curve of jerseys shifts leftward.

35) Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound. What takes place?

A) There is a shortage, so the price falls and quantity demanded increases.

B) There is a surplus, so the price falls and quantity demanded increases.

C) There is a shortage, so the price rises and quantity demanded decreases.

D) There is a shortage, so the price rises and quantity demanded increases.

E) There is a shortage, so the price falls and quantity demanded decreases.