Chapter 3 Study Plan

Suppose that apples and grapes are substitutes. Which change will decrease the demand for grapes?

an increase in the price of apples

Moving from one point to another along the same supply curve represents a(n):

change in quantity supplied

Shifting the supply curve to the left represents a(n):

decrease in supply

If the price of e-books, a substitute for printed textbooks, decreases the:

demand for printed textbooks will decrease.

Suppose that clothes from the thrift store are inferior goods. If incomes decrease...

demand will increase

True or False: If the equilibrium price of a bag of apples is $5, and the current price is $6, there is a shortage of bags of apples.

False

True or False: If two products are complements in production, a decrease in the price of one of the products will result in an increase in supply of the other product.

False

A competitive market is a market in which...

there are many buyers and sellers

True or False: If two products are substitutes in production, a decrease in the price of one of the products will result in a decrease in the price of the other product.

True

True or False: A technological improvement in the production of a good causes a decrease in quantity.

False

True or False: A technological improvement in the production of a good causes a decrease in price.

True

One can determine whether a good is normal or inferior if one knows what happens to demand for the good when:

income increases

If the price of an input decreases supply:

increases and the supply curve shifts to the right.

According to the law of demand as:

price decreases, the quantity demanded increases.

According to the law of demand as:

price increases, the quantity demanded decreases.

The supply curve has a positive slope because...

producers are willing to sell more at higher price.

Wii consoles and Wii video games are complements. If the price of Wii consoles decreases, the demand curve for Wii video games will:

shift to the right

An increase in demand is indicated by:

shifting the entire demand curve to the right.

Wii consoles and Wii video games are complements. If the price of Wii consoles goes up, the demand curve for Wii video games will: Please choose the correct answer from the following choices, and then select the submit answer button.

shifts to the left

Which of the following is a competitive market?

small farmers in Kansas selling their wheat

A schedule showing the quantity of a product that producers are willing to sell at each possible price is known as:

supply

If the price of an input increases...

supply decreases and the equilibrium price increases.

If skim milk and cream are complements in production, when the price of skim milk increases, what happens in the market for cream?

the supply of cream increases

Suppose that the number of bookstores selling textbooks in a university town decreases. What will happen in the market for textbooks?

the supply will shift to the left