1. Elvira decreased her consumption of bananas when the price of peanut butter increased. For Elvira, peanut butter and bananas are
- both inferior goods.
- both luxury goods.
- substitutes in consumption.
- complements in consumption.
2. Suppose that when the price of raspberries increases, Lonnie increases his purchases of papayas. To Lonnie,
- raspberries and papayas are inferior goods.
- raspberries and papayas are complements.
- raspberries and papayas are normal goods.
- raspberries and papayas are substitutes.
3. In January, buyers of gold expect that the price of gold will rise in February. What happens in the gold market in January, holding all else constant?
- The demand curve shifts to the left.
- The quantity demanded increases.
- The supply curve shifts to the right.
- The demand curve shifts to the right.
4. If in the market for peaches, the supply curve has shifted to the left,
- the supply of peaches has decreased.
- the supply of peaches has increased.
- the quantity of peaches supplied has increased.
- the quantity of peaches supplied has decreased.