Refer to the figure below. Assume the market is originally at point W. Movement to point Z is a combination of: 
A. an increase in demand and an increase in quantity supplied.
B. an increase in supply and an increase in demand.
C. a decrease in supply and an increase in quantity demanded.
D. an increase in supply and an increase in quantity demanded.
Answer: B
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What happens when the price level falls?
A) Total planned real spending remains constant. B) Total planned real spending increases. C) Total planned real spending also falls. D) Planned real spending on goods increases but planned real spending on services falls.
If a runner's demand for bottled water increases, and the market price remains unchanged, the runner's consumer surplus
a. falls because the difference between what the runner is willing to pay and price decreases b. falls because the marginal utility of bottled water falls when the demand curve shifts to the left c. remains constant because price doesn't change d. increases e. is zero
A "free rider" is an individual who reaps
A. Indirect benefits from someone else's purchase of a public good. B. Direct benefits from someone else's purchase of a public good. C. Direct benefits from someone else's purchase of a private good. D. Indirect benefits from someone else's purchase of a private good.
If a firm is producing at the kink in its demand curve and it decides to decrease its price, according to the kinked demand model
A. It will lose market share, but its profits will decrease. B. It will gain market share. C. It will lose market share to the firms that do not follow the price decrease. D. Its market share will not be affected.