62 practice sets · Page 4 of 4
A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates
a change in supply.
the law of demand.
the nature of an inferior good.
the law of supply.
A change in which of the following alters buying plans for cars but does NOT shift the demandcurve for cars?
a 10 percent decrease in the price of car insurance
a 20 percent increase in the price of a car
a 5 percent increase in peoples income
an increased preference for walking rather than driving
