Question

IS. Which of the following best describes what happens when the price of oranges increases? a) There is a shift to the right in the demand curve for oranges b) There is a shift to the left of the demand curve for oranges c) There is a shift along the demand curve for oranges d) There is a no change in the demand curve for oranges 16. Which of the following best describes what happens when consumer income increases? a) There is a shift to the right in the demand curve for oranges b) There is a shift to the left of the demand curve for oranges c) There is a shift along the demand curve for oranges d) There is a no change in the demand curve for oranges 17. Which of the following best describes what happens when orange trees become more productive? a) There is a shift to the right in the supply curve for oranges b) There is a shift to the left of the supply curve for oranges c) There is a sift along the supply curve for oranges d) There is a no change in the supply curve for oranges 18. Which of the following best describes what happens when the price of oranges increases? a) There is a shift to the right in the supply curve for oranges b) There is a shift to the left of the supply curve for oranges c) There is a shift along the supply curve for oranges d) There is a no change in the supply curve for oranges 19. If the government gives each consumer a tax reduction equal to $600 (i.e. increase in income), what would you expect to happen to the equilibrium price oforanges? a) equiibrium price increases b) equilibrium price decreases c) equilibrium price stays the same d) equilibrium price change uncertain (could go up or down)

Answer 1

15) When there is a change in price , the effect is always along the curve. So if he price of oranges increases, there is a shift along the demand curve for oranges. So option C is the correct answer.

16)If the consumer income increases there will be an increase in the demand for the oranges in the market. Due to this , there will be a shift to the right in the demand curve for oranges. So option A is the correct answer.

17)As the orange trees become more productive, there will be a increase in the supply of the oranges. So there will be a shift to the right in the supply curve of oranges. So option A is the correct answer.

18) When there is a change in the price, there is a movement along the curve. So, when the price of oranges increase, there is a shift along the supply curve of the oranges. So option C is the correct answer.