Question 1: A sudden discovery of an enormous gold mine in Florida would mean a _______
1. Rightward shift in the supply curve for gold.
2. Rightward shift in the demand curve for gold.
3. Leftward shift in the supply curve for gold.
4. Leftward shift in the demand curve for gold.
Question 2: In a shorefront tourist town, a hurricane washes away the beach. All of the town's hotels, however, are still intact.
1. Does the supply curve for hotel rooms shifts to the left, shift to the right, or stay in the same place?
2. Does the demand curve for hotel rooms shifts to the left, shift to the right, or stay in the same place?
3. After the hurricane, what happens to the equilibrium price and quantity of hotel rooms?
4. Suppose the neighboring town still has its beach. After the hurricane, what happens to the market for hotel rooms in that town?