5 t 0 2 4 6 8 10 12 14 16 18 20 Quantity Demanded Refer to t

$5 t 0 2 4 6 8 10 12 14 16 18 20 Quantity Demanded Refer to the three demand curves for electric cars. Which of the following would cause a shift in electric car demand from Di to D3? A) an increase in the price of electric cars B) a decrease in price of gasoline C) an increase in the price of gasoline D) an increase in price of gasoline 48) Use the figure below to answer the following question. S, 0 2 4 6 8 10 12 14 16 18 20 Quantity Supplied (thousands of bushels per week) The diagram shows three supply curves for corn. Which of the following would cause the supply of corn to shift from S1 to S3? A) a decrease in the cost of equipment used in corn farming B) a decrease in the price of corn C) an increase in the number of acres of farmland allocated to corn ) an increase in the cost of equipment used in corn farming 49) Which one of the following is not assumed to be constant when the supply curve for a product is drawn? A) price of the productB) number of producers C)state of technology D) price of inputs used to make the product 14

Solution

Question 1

B. A decrease in the price of gasoline. Cars run on gas and electric cars are substitutes. A decrease in the price of a good (in this case gasoline cars) will cause the demand for electric cars to fall, the demand curve for electric cars will shift to the left (inwards).

Question 2

D. An increase in the cost of equipment.

Shifts in supply occur due to changes in costs of production. Higher costs of product will shift supply curve to the left.