Econ Lowdown Post Test Questions completely solved

A decrease in the price of a good would be illustrated on a supply graph as a: - Movement along the supply curve downward If the price of one of the resources used to produce a good decreases: - The supply curve for that good would shift right An improvement in technology used by producers of a certain good will result in: - An increase in the supply of the good According to the law of supply, if the price of a good or service increases: - Quantity supplied will increase If a good is considered "normal" by economists, an increase in consumers' incomes will result in a decrease in the demand for the good. True or false? - False An increase in the price of a good would be illustrated on a demand graph as a: - Shift of the demand curve to the left An increase in the average incomes of consumers will result in: - An increase in the demand for goods and services If the price of peanut butter were to increase, what would likely happen to the demand for jelly? - The demand for jelly would decrease--the demand curve would shift left When the price of good A rises, people start to drink good B. In this case: - Good B is a substitute good If two goods are complements, an increase in the price of one good will cause a decrease in the demand for the other. True or false? - True If consumers expect higher coffee prices in the future: - The demand for coffee will increase now According to the law of demand, as the price of a good or service increases the: - Quantity demanded of the good or service will decrease If good A is considered to be an inferior good, when incomes rise: - The demand for good A will decrease and the demand curve will shift to the left