Practice Exam Two (5,6,19,11,12)
Student: ___________________________________________________________________________
1. The Katrina disaster in New Orleans decreased the ability of oil companies to purify crude oil into gasoline. This caused:
A. the supply curve for gasoline to shift inward.
B. the supply curve for gasoline to shift outward.
C. the quantity of gasoline demanded to move out along the demand curve.
D. the quantity of gasoline supplied to move in along the supply curve. 2. Suppose the price of tomatoes dramatically increases. Which of the following could cause this change?
A. Hurricanes during the late summer damages the Florida crop, shifting supply left
B. A reduction in tariffs of tomatoes from Central American, shifting supply right
C. A news report stating that a pesticide used on tomatoes might cause cancer, shifting the demand to the right
D. Advertising for catsup increases demand for catsup, shifting the demand curve to the left 3. An increase in price and decrease in quantity are consistent with a:
A. leftward shift in demand and no shift in supply.
B. leftward shift in supply and no shift in demand.
C. rightward shift in supply and a rightward shift in demand.
D. rightward shift in supply and a leftward shift in demand. 4. An increase in quantity and an indeterminate change in price are consistent with a:
A. leftward shift in demand and supply.
B. rightward shift in supply and demand.
C. rightward shift in supply, keeping demand constant.
D. rightward shift in demand, keeping supply constant. 5. Suppose caviar sales soars at the same time price increases. What would lead to both a higher quantity sold and higher price of caviar?
A. A shift in demand to the right and a larger shift in supply to the right.
B. A shift in demand to the left and a smaller shift in supply to the left.
C. A shift in demand