Module 1.4, 1.5, and 1.6

Which graph depicts a demand curve?

• A

• B

• C

• D

Which graph depicts a supply curve?

• A

• B

• C

• D

Does a demand curve slope up or down?

• Up

• Down

Does a change in consumer tastes lead to a movement along the demand curve (price) or a shift in the demand curve (TRIBE)?

• Movement along the demand curve

• Shift of the demand curve.

Does a $50 decrease in the price of a Patagonia coat lead to a movement along the demand curve or a shift in the demand curve?

• Movement along the demand curve

• Shift of the demand curve.

Does a change in the size of the population lead to a movement along the demand curve or a shift in the demand curve?

• Movement along the demand curve

• Shift of the demand curve.

Does a change in the consumer income lead to a movement along the demand curve or a shift in the demand curve?

• Movement along the demand curve

• Shift of the demand curve.

Does a $1 increase in the price of milk lead to a movement along the demand curve or a shift in the demand curve?

• Movement along the demand curve

• Shift of the demand curve.

If the economy goes into recession and incomes fall, what happens in the markets for inferior goods?

• The demand curve shifts to the left.

• The demand curve shifts to the right.

Movie tickets and DVDs are substitutes. If the price of DVDs increases, what happens in the market for movie tickets?

• The demand curve shifts to the left.

• The demand curve shifts to the right.