CH3 HW

If an increase in income leads to an increase in the demand for opera tickets, then operas are a(n) _____ good.

normal

_____ refers to the goods and services people are willing and able to buy during a certain period of time, at various prices, ceteris paribus.

Demand

If bagels and doughnuts are substitute goods, then which scenario is likely to occur if the price of bagels is reduced?

The demand curve for doughnuts will shift to the left.

In the table, at a price of $12 [D:50,S:70]

a surplus of 20 units occurs.

Which event will cause an increase in the supply of yogurt?

an increase in the number of sellers in the yogurt market

(Figure: Interpreting Demand Curves) In the demand curve shown, an increase in price from $1 to $2 will

cause quantity demanded to fall from 30 to 20 units.

(Figure: Demand for Shoes) A shift to the right of the demand curve could be caused by a(n)

increase in income if the good is a normal good.

An institution that enables buyers and sellers to interact and transact with one another is known as a(n)

market.

Ceteris paribus, an improvement in production technology

shifts the supply curve to the right, reducing the equilibrium price and increasing equilibrium output.

The maximum amount of a product that sellers are willing and able to provide for sale over a particular period at various prices, ceteris paribus, is called

supply.