module 2 Econ

Refer to Figure 4-4. The movement from point A to point B on the graph is caused by

an increase in the price of the good

A likely example of complementary goods for most people would be

coffee and sugar

A supply schedule is a table that shows the relationship between

price and quantity supplied

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

the price of olives

The law of demand states that, other things equal, when the price of a good

falls, the quantity demanded of the good rises.

Soup is an inferior good if the demand

for soup falls when income rises.

Refer to Figure 4-7. Equilibrium price and quantity are, respectively,

$25 and 400 units

Refer to Figure 4-1. The movement from point A to point B on the graph is caused by

a decrease in price.

Refer to Figure 4-6. The shift from S' to S is called

a decrease in supply

If the demand for a good falls when income falls, then the good is called

a normal good

Refer to Figure 4-1. The movement from point A to point B on the graph shows

an increase in quantity demanded

Currently you purchase ten frozen pizzas per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are

an inferior good

At the equilibrium price, the quantity of the good that buyers are willing and able to buy

exactly equals the quantity that sellers are willing and able to sell

An increase in the price of a good will

increase in quantity supplied

Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price ceiling of $150 per physical. As a result of the price ceiling, the

quantity demanded of physicals increases, and the quantity supplied of physicals decreases.

If a nonbinding price floor is imposed on a market, then the

quantity sold in the market will stay the same.

The law of supply states that, other things equal, when the price of a good

rises, the quantity supplied of the good rises.

Refer to Figure 4-7. At a price of $15, there would be a

shortage of 400 units

A baker recently has come to expect higher prices for bread in the near future. We would expect

the baker to supply less bread now than she was supplying previously

Which of the following would not increase in response to a decrease in the price of ironing boards?

the quantity of irons supplied at each possible price of irons