4. An increase in supply is illustrated by a __________ shift in the market supply curve and will occur when _______________
Left; firms attempt to increase selling prices in response to a higher price paid for a major input to the production process.
Left; firms exit the industry, leaving more business for the remaining firms.
Right; input costs fall or an improvement in technology occurs.
Right; the price of the product increases.
5. In microeconomics, the market demand curve illustrates
A time series representing the price of a good and the quantity that has been purchased at each price.
The amount of a good or service purchased at various prices during a particular time period.
The relationship between the price of a good and the amount of that good that consumers are willing and able to buy within a certain time period.
The relationship between income and the amount of a good that consumers are willing and able to buy.
6. The market demand curve slopes downward because
The lower the price, the lower the quantity demanded of a good or service, as consumers’ perceived value falls.
The higher the price, the higher the quantity demanded of a good or service, as consumers’ perceived value increases.
The lower the price, the higher the quantity demanded, as consumers are willing and able to buy more of a good or service at lower prices.
Both a) and b).
7. An increase in demand for a normal good is illustrated by a __________ shift in the market demand curve and will occur when _______________
Right; consumer incomes rise.
Right; input prices fall.
Left; firms raise their prices in response to higher input costs.
Left; prices fall for substitute goods.