ase in quantity demanded and an increase in quantity supplied.d.an increase in quantity demanded and in increase in supply. Page 37.An insect that is resistant to currently used pesticides has infested the cotton crop, and this year's crop is only half of what was produced last year. You accurately predict that thisa.will shift the supply curve of cotton to the right, the equilibrium price of cotton will increase, and the demand for cotton will fall.b.will shift the supply curve of cotton to the right, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease.c.will shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease.d.will shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the demand for cotton will fall.8.Which of the following will NOT cause a shift in the demand curve for compact discs?a.a change in incomeb.a change in wealthc.a change in the price of prerecorded cassette tapesd.a change in the price of compact discs9.During an economic downturn when consumer income falls, the demand for ice cream increases and the demand for chocolate cake decreases. This implies thata.ice cream and chocolate cake are complements.b.ice cream is a normal good and chocolate cake is an inferior good.c.ice cream is an inferior good and chocolate cake is a normal good.d.ice cream is an economic bad and chocolate cake is an economic good.10.Demand curves are derived while holding constanta.income, tastes, and the price of the good.b.income and tastes.c.income, tastes, and the price of other goods.d.tastes and the price of other goods.11.The Pizza World restaurant had to increase the price of its pizzas due to higher input costs, but found that the number of pizzas sold actually increased slightly. The likely explanation is:a.a violation of the law of supply.b.a violation of th...
