A movement along a demand curve can be attributed to a change in 1.the substitut

ID: 1207550 • Letter: A

Question

A movement along a demand curve can be attributed to a change in

1.the substitution effect of consuming a good

2.the demand for a good

3.the opportunity cost of producing a good.

4.the quantity demanded of a good

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A shortage of textbooks is most likely to cause

1.an increase in the cost of printing

2.a decrease in the price of paper

3.a decrease in the supply of textbooks

4.an increase in the price of textbooks

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If both demand and supply increases in a market that is initially in equilibrium, price will

1.remain unchanged while quantity will increase.

2.remain unchanged while quantity will decrease

3.increase only if supply increases more than demand

4.increase only if demand increases more than supply

1. 3rd is correct since change in opportunitycost will change the price and any change in price will create a movment along the demand curve.

2. !st is correct increased cost of printing will decrease the supply and it will result in price appreciation due to shortage.

3. 4th is correct price increase only if demand increase more than supply

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