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1. Lead is an important input in the production of crystal. If the price of lead decreases, then we would
expect the supply of
a. crystal to be unaffected.
b. crystal to decrease.
c. crystal to increase.
d. lead to increase.
Lead is an ingredient in the production of crystal. When lead becomes less expensive, more lead is
bought, and with more lead, more crystal will be produced at any given price of crystal. Supply
curve of crystal shifts right.
2. A rightward shift of a demand curve is called a(n)
a. increase in demand.
b. decrease in demand.
c. decrease in quantity demanded.
d. increase in quantity demanded.
A shift in S or D curve is called an increase or a decrease in supply or demand, respectfully. A
rightward shift in D curve is an increase in demand. An increase in quantity demanded will be
caused only by the decrease in the price of that good, in which case you are sliding down the very
same demand curve.
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