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Glossary
Knowledge Check - Scenario 1

For the following milk market scenario, identify the type and cause of change.


Scenario 1: The price of milk increases from $3.50 to $4.50 per gallon.

1. Based on Scenario 1, the demand curve for milk

shifts to the right.

shifts to the left.

does not shift.

 
Scenario 1: The price of milk increases from $3.50 to $4.50 per gallon.
 
2. Based on Scenario 1, movement occurs

up the demand curve for milk.

down the demand curve for milk.

There is no movement.

 
Scenario 1: The price of milk increases from $3.50 to $4.50 per gallon.
 
3. Based on Scenario 1, there is

a change in demand for milk.

a change in the quantity demanded of milk.

 
Scenario 1: The price of milk increases from $3.50 to $4.50 per gallon.
 
4. Based on Scenario 1, which factor caused the change in quantity demanded of milk?

A change in consumer expectations

A change in consumer tastes or preferences

A change in the number of consumers in the market

A change in consumer income

A change in the price of a substitute good

A change in the price of a complementary good

A change in the price of milk