Problem 1: Which of the following will cause the demand curve for gasoline to shift leftward?
a. a decrease in the price of gasoline
b. an increase in the price of gasoline
c. a leftward shift of the supply of gasoline
d. a rightward shift of the supply of cars
e. a decrease in the price of bicycles
Problem 2: Markets reduce transactions costs
a. by decreasing the time spent searching for information about goods and services
b. only when they have a highly structured set of rules like the New York Stock Exchange
c. because each market uses the same set of rules for buying and selling goods and services
d. only when the government can coordinate the plans of many buyers and sellers
e. when prices are set by the sellers and are not determined by negotiation between the buyers and the sellers