If the price of aluminum used to make bicycles increases, the price of a bicycle rises because of a
A) rightward shift of the demand curve for bicycles.
B) rightward shift of the supply curve of bicycles.
C) leftward shift of the demand curve for bicycles.
D) leftward shift of the supply curve of bicycles.
D
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Bob's Funky T-shirts began the year with 1,000 shirts in inventory, produced 10,000 shirts during the year and ended the year with 1,100 shirts in inventory. The 100 shirts added to his inventory will be classified as
A) consumption expenditure. B) investment. C) net exports of goods and services. D) exports of goods and services. E) nondurable consumption goods.
Good A has a perfectly inelastic demand and an upward-sloping supply curve. Good B has a perfectly inelastic supply and a downward-sloping demand curve. If the same sales tax is imposed on the sellers of both good A and good B, the price paid by
A) buyers of good A rises by more than the price paid by buyers of good B. B) buyers of good B rises by more than the price paid by buyers of good A. C) buyers of good A rises by the same amount as the price paid by buyers of good B. D) More information is needed to determine whether the price paid by buyers of good A rises by more than, less than, or the same amount as the price paid by buyers of good B.