question
The price of cooking oil rises.
answer
supply shifts left
An increase in the price of cooking oil, used to produce potato chips, will make them more expensive to produce. Supply will decrease (the supply curve will shift to the left).
An increase in the price of cooking oil, used to produce potato chips, will make them more expensive to produce. Supply will decrease (the supply curve will shift to the left).
question
Let's say that more teenagers tend to eat potato chips than elderly people. If the birth rate falls so that the proportion of older to younger people is bigger than ever before, we would expect
answer
demand to fall
With a more elderly-heavy population, there will be fewer potato chip consumers. Demand will fall (shift leftward).
With a more elderly-heavy population, there will be fewer potato chip consumers. Demand will fall (shift leftward).
question
Potato chips are high in fat. If more and more Americans start low-fat diets, then we expect
answer
the demand curve to shift leftward
Demand would fall as people move away from eating high-fat foods like potato chips; the demand curve would shift leftward.
Demand would fall as people move away from eating high-fat foods like potato chips; the demand curve would shift leftward.
question
Let's say that many people working in potato-chip factories earn the minimum wage. If the USA increased this minimum wage, then
answer
supply would shift leftward
This would increase costs, pushing supply down (shifting it leftward).
This would increase costs, pushing supply down (shifting it leftward).
question
If sellers of potato chips think that the prices of those chips will increase next week, then today we would expect to see
answer
a decrease in supply
Since it's sellers having the expectation, the supply curve will be affected. If sellers think the price will go up in the future, they'll sell less today, causing a decrease in supply.
Since it's sellers having the expectation, the supply curve will be affected. If sellers think the price will go up in the future, they'll sell less today, causing a decrease in supply.
question
If the average income of American consumers falls, we would expect to see
answer
the demand curve shift leftward
question
If buyers think the price of potato chips will be higher next week, today we would expect to see
answer
an increase in demand
Because it's buyers having the expectation, this is a demand shifter. As buyers think potato chips will be more expensive next week, they'll want to buy more now, increasing demand (shifting the demand curve to the right) today. (An increase in quantity demanded of potato chips can ONLY be caused by a decrease in price of potato chips.)
Because it's buyers having the expectation, this is a demand shifter. As buyers think potato chips will be more expensive next week, they'll want to buy more now, increasing demand (shifting the demand curve to the right) today. (An increase in quantity demanded of potato chips can ONLY be caused by a decrease in price of potato chips.)
question
Which of the following could not cause an increase in demand for potato chips?
answer
a decrease in price of potato chips
question
Which of the following could not shift the supply curve to the left?
answer
An increase in the price of popcorn.
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