Why the purchases tend to fall with decreases in buyers

Question

1.The quantity demanded of a product increases as its price declines because the

1. lower price shifts the demand curve leftward.
2.  lower price shifts the demand curve rightward.
3. lower price results in an increase in supply.
4. demand curve is down sloping.

2. A surplus of a product will arise when price is

1. below equilibrium with the result that quantity supplied exceeds quantity demanded.
2. above equilibrium with the result that quantity supplied exceeds quantity demanded.
3. above equilibrium with the result that quantity demanded exceeds quantity supplied.
4. below equilibrium with the result that quantity demanded exceeds quantity supplied.

3. If an effective price ceiling is placed on hamburgers then

1. the quantity demanded will exceed the quantity supplied.
2. consumers may want government to ration hamburger.
3. a black market for hamburger may evolve.
4. all of these are likely outcomes.

4. An increase in demand for oil along with a simultaneous increase in supply of oil will

1. increase price and decrease quantity.
2. decrease price and increase quantity.
3. increase price, but whether it increases quantity depends on how much each curve shifts.
4. increase quantity, but whether it increases price depends on how much each curve shifts.

5. For most products, purchases tend to fall with decreases in buyers' incomes. Such products are known as

1. direct goods.
2. inferior goods.
3. normal goods.
4. average goods.