Question

A demand curve can shift for many reasons.

Select the reason below that does NOT shift a demand curve.

a.)

Price of substitutes increases

b.)Changes in preferences

c.)Price of complements increases

d.)Changes in price of the good

2.As prices increase, producers are willing to __________.

• a.)produce less of a good or service
• b.)demand more of a good or service
• c.)supply a larger quantity of a good or service
• d.demand less of a good or service

3)

Suppose you are willing to pay $3 for an ice cream cone. The price at the local creamery is $1.75.

What is your consumer surplus?

• a.)

  $3.00

• b.)

  $1.25

• c.)

  $4.75

• d.)

  $1.75

Answer 1