1. Suppose a college increases the wages paid to student employees. Which of the following options is the best description of the most likely effect of the wage increases on the market for school sweatshirts in the bookstore?
A.There is a rightward movement along the demand curve.
B.The demand curve shifts to the right.
C.There is a leftward movement along the demand curve.
D.The demand curve shifts to the left.
2. Suppose that airfares to Hawaii increase. What effect does this have on the market for hotel rooms in Hawaii?
A.It decreases the supply of hotel rooms.
B.It increases the demand for hotel rooms.
C.It decreases the demand for hotel rooms.
D.It increases the supply of hotel rooms.
3. The positive slope of the supply curve tells us that
A. Taxes do not affect the cost of producing a good.
B. firms disregard the law of demand.
C. firms respond to a higher price of their product by increasing the quantity supplied.
D. Input prices have no effect on the supply of a good.
1. Suppose a college increases the wages paid to student employees. Which of the following options is the best description of the most likely effect of the wage increases on the market for school sweatshirts in the bookstore?
A.There is a rightward movement along the demand curve.
B.The demand curve shifts to the right.
C.There is a leftward movement along the demand curve.
D.The demand curve shifts to the left.
2. Suppose that airfares to Hawaii increase. What effect does this have on the market for hotel rooms in Hawaii?
A.It decreases the supply of hotel rooms.
B.It increases the demand for hotel rooms.
C.It decreases the demand for hotel rooms.
D.It increases the supply of hotel rooms.
3. The positive slope of the supply curve tells us that
A. Taxes do not affect the cost of producing a good.
B. firms disregard the law of demand.
C. firms respond to a higher price of their product by increasing the quantity supplied.
D. Input prices have no effect on the supply of a good.
