QUESTION 1 Cane sugar and beet sugar are substitutes in the production of soft d
ID: 2439457 • Letter: Q
Question
QUESTION 1
Cane sugar and beet sugar are substitutes in the production of soft drinks. If the price of sugar beets increases, with other things remaining the same, we would expect:
the price of cane sugar to fall.
the demand curve for cane sugar to shift to the right.
the demand curve for beet sugar to shift to the left.
nothing to happen to cane sugar because it is only a substitute for beet sugar.
the demand curve for cane sugar to shift to the left.
1 points
QUESTION 2
All of the following will cause a shift in the supply of electricity, EXCEPT
A government subsidy for solar panels.
The construction of a new nuclear power plant.
An increase in the price of electricity.
An increase in wages for workers at electrical power plants.
1 points
QUESTION 3
The price of good A goes up. As a result, the demand for good B shifts to the right. From this we can infer that:
good A is used to produce good B.
good B is used to produce good A.
goods A and B are substitutes.
goods A and B are complements.
none of the above
a.the price of cane sugar to fall.
b.the demand curve for cane sugar to shift to the right.
c.the demand curve for beet sugar to shift to the left.
d.nothing to happen to cane sugar because it is only a substitute for beet sugar.
e.the demand curve for cane sugar to shift to the left.
Explanation / Answer
1. Ans: the demand curve for cane sugar to shift to the right
Explanation:
Since cane sugar and beet sugar are substitutes, an increase in the price of beet sugar will lead to increase in demand for cane sugar. This can be shown by a rightward shift in the demand curve of cane sugar.
2.Ans: An increase in the price of electricity
Explanation:
Change in price will lead to a movement along the demand curve. Except price change in other things leads to shift in the demand curve.
3. Ans: good A and B are substitutes
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