1. As demand shifts to the right what happens to each of the following -- Quantity supplied (Qs), Price (P), and Quantity (Q)?
A) Qs (up); P (down); Q (down)
B) Qs (up); P (down); Q (up)
C) Qs (up); P (up); Q (up)
D) Qs (down); P (up); Q (up)
E) Qs (down); P (up); Q (down)
2. As people's income goes up, what happens to the market for inferior goods?
A) D (increases); P (down); Q (down)
B) D (increases); P (down); Q (up)
C) D (increases); P (up); Q (up)
D) D (decreases); P (up); Q (up)
E) D (decreases); P (down); Q (down)
3. As people's income goes down, what happens to the market for normal goods?
A) D (increases); P (down); Q (down)
B) D (increases); P (down); Q (up)
C) D (increases); P (up); Q (up)
D) D (decreases); P (up); Q (up)
E) D (decreases); P (down); Q (down)