Refer to Figure 3-1. An increase in the expected future price of the product would be represented by a movement from

When the demand for grapes decreases and the supply of grapes increases at the same time, we can predict that the: a. price of grapes will fall

b. price of grapes will rise. c. quantity of grapes exchanged will fall. d. quantity of grapes exchanged will rise.

If consumption of a good by one person imposes costs on a party other than the producer,

a. the consumption creates a positive externality b. the good is a public good c. the consumption creates a negative externality d. too little of the good is produced from society's point of view e. the market will correct the problem if left alone