. In Exhibit 2, the shift in the demand curve from Di to D2 could have been caus
ID: 1126403 • Letter: #
Question
. In Exhibit 2, the shift in the demand curve from Di to D2 could have been caused by which of the following? a. Decrease in price b. Increase in expected future prices. c. Increase in the price of a complement. d. Decrease in income if it is a normal good. 9. If the demand for a good increases when the price of another good increases, then these goods are: a. complementary in consumption b. complementary in production substitute in production. c. d. e. substitute in consumption. neither substitutes nor complementary. Other things being equal, the effects of an increase in the price of crackers on the market for soup is represented by a (an): a. downward movement along the demand curve for soup. b. upward movement along the demand curve for soup. c. rightward shift in the demand curve for soup. d. leftward shift in the demand curve for soup. 10. Exhibit 5 Supply for Tucker's Cola Data Quantity supplied per Price per week (millions of gallons) gallon S3.00 2.50 2.00 1.50 1.00 50 11. As shown in Exhibit 5, the price and quantity supplied by sellers of Tucker's Cola have a (an) relationship. a. direct. b. inverse c. negative. d. zero.Explanation / Answer
Ans:
9) Option D
Substitute in consumption
In case of substitutes, the increase in the price of one good will increase the demand for other good.
10) Option C
rightward shift in the demand curve for soup.
If the demand for a good changes for factors other than price the demand curve will shift.In this case the increase in the demand for soup will shift the demand curve to the right.
11) Option A
Direct.
With the increase in the price the supply of good is increased and with the decrease in the price supply of good is decrease, hence there is a direct relationship.
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