1-Which variable is NOT a demand shifter?
Select one:
a. price of complements
b. price of substitutes
c. price of raw materials
d. tastes and preferences
2- What does the law of supply state?
Select one:
a. There is a positive relationship between price and quantity supplied.
b. There is a negative relationship between price and quantity supplied.
c. When prices rise, suppliers sell more.
d. When prices rise, buyers buy less of the product.
3- What can cause both equilibrium price and quantity to increase?
Select one:
a. an increase in the price of a complement good
b. a decrease in the population
c. consumer tastes becoming more favorable toward the good
d. an increase in the number of sellers