Problem Set #4

Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. The forces that make market economies work are a. work and leisure. b. politics and religion. c. supply and demand. d. taxes and government spending. 2. In a market economy, supply and demand determine a. both the quantity of each good produced and the price at which it is sold. b. the quantity of each good produced, but not the price at which it is sold. c. the price at which each good is sold, but not the quantity of each good produced. d. neither the quantity of each good produced nor the price at which it is sold. 3. For a market for a good or service to exist, a. there must be a group of buyers and sellers. b. there must be a specific time and place at which the good or service is traded. c. there must be a high degree of organization present. d. All of the above are correct. 4. In a competitive market, the quantity of a product produced and the price of the product are determined by a. buyers. b. sellers. c. both buyers and sellers. d. None of the above is correct. 5. A competitive market is one in which a. there is only one seller, but there are many buyers. b. there are many sellers and each seller has the ability to set the price of his product. c. there are many sellers and they compete with one another in such a way that some sellers are always being forced out of the market. d. there are so many buyers and so many sellers that each has a negligible impact on the price of the product. 6. Buyers and sellers who have no influence on market price are referred to as a. market pawns. b. monopolists. c. price takers. d. price makers. 7. In a perfectly competitive market, at the market price, a. buyers cannot buy all they want and sellers cannot sell all they want. b. buyers cannot buy all they want, but sellers can sell all they want. c. buyers can buy all they want, but sellers cannot sell all they want. d. buyers can buy all they want and sellers can sell all they want. 8. Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exits the market, a. the price of tennis balls increases.

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b. the price of tennis balls decreases. c. the price of tennis balls does not change. d. there is no longer a market for tennis balls. ____ 9. The quantity demanded of a good is the amount that buyers a. are willing to purchase. b. are willing and able to purchase. c. are willing and able and need to purchase. d. are able to purchase.

____ 10. The law of demand states that, other things equal, a. when the price of a good falls, the demand for the good rises. b. when the price of a good rises, the quantity demanded of the good rises. c. when the price of a good rises, the demand for the good falls. d. when the price of a good falls, the quantity demanded of the good rises. ____ 11. The line that relates the price of a good and the quantity demanded of that good is called the a. demand schedule, and it usually slopes upward. b. demand schedule, and it usually slopes downward. c. demand curve, and it usually slopes upward. d. demand curve, and it usually slopes downward. ____ 12. The market demand curve a. is the sum of all individual demand curves. b. is the demand curve for every product in an industry. c. shows the average quantity demanded by individual demanders at each price. d. is always flatter than an individual demand curve. ____ 13. When quantity demanded decreases at every possible price, we know that the demand curve has a. shifted to the left. b. shifted to the right. c. not shifted; rather, we have moved along the demand curve to a new point on the same curve. d. not shifted; rather, the demand curve has become flatter. ____ 14. An increase in demand is represented by a. a movement downward and to the right along a demand curve. b. a movement upward and to the left along a demand curve. c. a rightward shift of a demand curve. d. a leftward shift of a demand curve. ____ 15. An increase in quantity demanded a. results in a movement downward and to the right along a fixed demand curve. b. results in a movement upward and to the left along a fixed demand curve. c. shifts the demand curve to the left. d. shifts the demand curve to the right. ____ 16. When the price of a good or service changes, a. the supply curve shifts in the opposite direction. b. the demand curve shifts in the opposite direction. c. the demand curve shifts in the same direction. d. there is a movement along a given demand curve.

____ 17. The demand curve for textbooks shifts a. when a determinant of the demand for textbooks other than income changes. b. when a determinant of the demand for textbooks other than the price of textbooks changes. c. when any determinant of the demand for textbooks changes. d. only when the number of textbook-buyers changes. ____ 18. If the demand for a good falls when income falls, then the good is called a. a normal good. b. a regular good. c. a luxury good. d. an inferior good. ____ 19. Which of the following would shift the demand curve for gasoline to the right? a. a decrease in the price of gasoline b. an increase in consumer income, assuming gasoline is a normal good c. an increase in the price of cars, a complement for gasoline d. a decrease in the expected future price of gasoline ____ 20. If a decrease in income increases the demand for a good, then the good is a. a substitute good. b. a complementary good. c. a normal good. d. an inferior good. ____ 21. Currently you purchase 6 packages of hot dogs a month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase hot dogs in January. For you, hot dogs are a. a substitute good. b. a normal good. c. an inferior good. d. a complementary good. ____ 22. Two goods are substitutes when a decrease in the price of one good a. decreases the demand for the other good. b. decreases the quantity demanded of the other good. c. increases the demand for the other good. d. increases the quantity demanded of the other good. ____ 23. Good X and good Y are substitutes. If the price of good Y increases, then the a. demand for good X will decrease. b. quantity demanded of good X will decrease. c. demand for good X will increase. d. quantity demanded of good X will increase. ____ 24. If goods A and B are complements, then an increase in the price of good A will result in a. more of good A being sold. b. more of good B being sold. c. less of good B being sold. d. no difference in the quantity sold of either good. ____ 25. A higher price for batteries would result in a(n) a. increase in the demand for flashlights. b. decrease in the demand for flashlights.

c. increase in the demand for batteries. d. decrease in the demand for batteries. ____ 26. Suppose the American Medical Association announces that men who shave their heads are less likely to die of heart failure. We could expect the current demand for a. hair gel to increase. b. razors to increase. c. combs to increase. d. shampoo to increase. ____ 27. Today, people changed their expectations about the future. This change a. can cause a movement along a demand curve. b. can affect future demand, but not todays demand. c. can affect todays demand. d. cannot affect either todays demand or future demand. ____ 28. If Juan expects to earn a higher income next month, he may choose to a. save more now and spend less of his current income on goods and services. b. save less now and spend more of his current income on goods and services. c. decrease his current demand for goods and services. d. move along his current demand curves for goods and services. ____ 29. Ford Motor Company announces that next month it will offer $3,000 rebates on new Mustangs. As a result of this information, todays demand curve for Mustangs a. shifts to the right. b. shifts to the left. c. shifts either to the right or to the left, but we cannot determine the direction of the shift from the given information. d. will not shift; rather, the demand curve for Mustangs will shift to the right next month. ____ 30. The quantity supplied of a good is the amount that a. buyers are willing and able to purchase. b. sellers are able to produce. c. buyers and sellers agree will be brought to market. d. sellers are willing and able to sell. ____ 31. The law of supply states that, other things equal, a. when the price of a good falls, the supply of the good rises. b. when the price of a good rises, the quantity supplied of the good rises. c. when the price of a good rises, the supply of the good falls. d. when the price of a good falls, the quantity supplied of the good rises. ____ 32. A supply curve slopes upward because a. as more is produced, total cost of production falls. b. an increase in input prices increases supply. c. the quantity supplied of most goods and services increases over time. d. an increase in price gives producers an incentive to supply a larger quantity. ____ 33. The line that relates the price of a good and the quantity supplied of that good is called the a. supply schedule, and it usually slopes upward. b. supply schedule, and it usually slopes downward. c. supply curve, and it usually slopes upward. d. supply curve, and it usually slopes downward.

____ 34. The sum of all the individual supply curves for a product is called a. total supply. b. market supply. c. aggregate supply. d. total output. ____ 35. When quantity supplied decreases at every possible price, we know that the supply curve has a. shifted to the left. b. shifted to the right. c. not shifted; rather, we have moved along the supply curve to a new point on the same curve. d. not shifted; rather, the supply curve has become flatter. ____ 36. An increase in supply is represented by a. a movement downward and to the left along a supply curve. b. a movement upward and to the right along a supply curve. c. a rightward shift of a supply curve. d. a leftward shift of a supply curve. ____ 37. When the price of a good or service changes, a. the demand curve shifts in the opposite direction. b. the supply curve shifts in the opposite direction. c. the supply curve shifts in the same direction. d. there is a movement along a given supply curve. ____ 38. The supply curve for cookbooks shifts a. when a determinant of the supply of cookbooks other than technology changes. b. when a determinant of the supply of cookbooks other than the price of cookbooks changes. c. when any determinant of the supply of cookbooks changes. d. only when the number of cookbook-sellers changes. ____ 39. Suppose you make jewelry. If the price of gold falls, then we would expect you to a. be willing and able to produce less jewelry than before at each possible price. b. be willing and able to produce more jewelry than before at each possible price. c. face a greater demand for your jewelry. d. face a weaker demand for your jewelry. ____ 40. Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the a. demand for bicycle assembly workers will increase. b. supply of bicycles will shift to the right. c. supply of bicycles will shift to the left. d. firm must increase output to maintain profit levels. ____ 41. An advance in production technology will a. increase a firm's costs and increase its supply. b. increase a firms costs and decrease its supply. c. decrease a firms costs and increase its supply. d. decrease a firms costs and decrease its supply. ____ 42. If suppliers expect the price of their product to fall in the future, then they will a. decrease supply now.

b. increase supply now. c. decrease supply in the future but not now. d. increase supply in the future but not now. ____ 43. A dress manufacturer recently has come to expect higher prices for dresses in the near future. We would expect a. the dress manufacturer to supply more dresses now than it was supplying previously. b. the dress manufacturer to supply fewer dresses now than it was supplying previously. c. the demand for this manufacturer's dresses to fall. d. no change in the dress manufacturer's current supply; instead, future supply will be affected. ____ 44. The unique point at which the supply and demand curves intersect is called a. market harmony. b. coincidence. c. equivalence. d. equilibrium. ____ 45. At the equilibrium price, the quantity of the good that buyers are willing and able to buy a. is greater than the quantity that sellers are willing and able to sell. b. exactly equals the quantity that sellers are willing and able to sell. c. is less than the quantity that sellers are willing and able to sell. d. (a) and (c) could both be correct. ____ 46. Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell a. at prices at and above the equilibrium price. b. at prices at and below the equilibrium price. c. at prices above and below the equilibrium price, but not at the equilibrium price. d. at the equilibrium price, but not above or below the equilibrium price. ____ 47. When the price of a good is higher than the equilibrium price, a. a shortage will exist. b. buyers desire to purchase more than is produced. c. sellers desire to produce and sell more than buyers wish to purchase. d. quantity demanded exceeds quantity supplied. ____ 48. If a surplus exists in a market, then we know that the actual price is a. above the equilibrium price and quantity supplied is greater than quantity demanded. b. above the equilibrium price and quantity demanded is greater than quantity supplied. c. below the equilibrium price and quantity demanded is greater than quantity supplied. d. below the equilibrium price and quantity supplied is greater than quantity demanded. ____ 49. When a surplus exists in a market, sellers a. raise price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated. b. raise price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated. c. lower price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated. d. lower price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated. ____ 50. If a shortage exists in a market, then we know that the actual price is

a. b. c. d.

above the equilibrium price and quantity supplied is greater than quantity demanded. above the equilibrium price and quantity demanded is greater than quantity supplied. below the equilibrium price and quantity demanded is greater than quantity supplied. below the equilibrium price and quantity supplied is greater than quantity demanded.

____ 51. When a shortage exists in a market, sellers a. raise price, which increases quantity demanded and decreases quantity supplied, until the shortage is eliminated. b. raise price, which decreases quantity demanded and increases quantity supplied, until the shortage is eliminated. c. lower price, which increases quantity demanded and decreases quantity supplied, until the shortage is eliminated. d. lower price, which decreases quantity demanded and increases quantity supplied, until the shortage is eliminated. ____ 52. Suppose roses are currently selling for $20 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a a. shortage to exist and the market price of roses to increase. b. shortage to exist and the market price of roses to decrease. c. surplus to exist and the market price of roses to increase. d. surplus to exist and the market price of roses to decrease. Figure 4-8
50 45 40 35 30 25 20 15 10 5 price

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____ 53. Refer to Figure 4-8. Equilibrium price and quantity are, respectively, a. $15 and 200. b. $25 and 600. c. $25 and 400. d. $35 and 200. ____ 54. Refer to Figure 4-8. At a price of $35, a. a shortage would exist and the price would tend to rise from $35 to a higher price. b. a surplus would exist and the price would tend to rise from $35 to a higher price. c. an excess demand would exist and the price would tend to fall from $35 to a lower price. d. an excess supply would exist and the price would tend to fall from $35 to a lower price. ____ 55. Refer to Figure 4-8. At a price of $20,

a. there would be a shortage and the law of supply and demand predicts that the price will fall from $20 to a lower price. b. there would be a surplus and the law of supply and demand predicts that the price will rise from $20 to a higher price. c. there would be an excess demand and the law of supply and demand predicts that the price will rise from $20 to a higher price. d. there would be an excess supply and the law of supply and demand predicts that the price will fall from $20 to a lower price. Figure 4-9
20 18 16 14 12 10 8 6 4 2 price

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____ 56. Refer to Figure 4-9. In this market, equilibrium price and quantity, respectively, are a. $10 and 30. b. $10 and 50. c. $10 and 70. d. $4 and 50. ____ 57. Refer to Figure 4-9. If price in this market is currently $14, then there would be a(n) a. surplus of 20 units and the law of supply and demand predicts that the price will rise from $14 to a higher price. b. excess supply of 20 units and the law of supply and demand predicts that the price will fall from $14 to a lower price. c. surplus of 40 units and the law of supply and demand predicts that the price will rise from $14 to a higher price. d. excess supply of 40 units and the law of supply and demand predicts that the price will fall from $14 to a lower price. ____ 58. Refer to Figure 4-9. If there is currently a shortage of 20 units of the good, then a. the law of demand predicts that the price will rise by $2 to eliminate the shortage. b. the law of supply predicts that the price will rise by $2 to eliminate the shortage. c. the law of supply and demand predicts that the price will rise by $2 to eliminate the shortage. d. the law of supply and demand predicts that the price will fall by $2 to eliminate the shortage. ____ 59. If the demand for a product increases, then we would expect

a. b. c. d.

equilibrium price to increase and equilibrium quantity to decrease. equilibrium price to decrease and equilibrium quantity to increase. equilibrium price and equilibrium quantity both to increase. equilibrium price and equilibrium quantity both to decrease.

____ 60. Suppose buyers of computers and printers regard those two goods as complements. Then an increase in the price of computers will cause a. a decrease in the demand for printers and a decrease in the quantity supplied of printers. b. a decrease in the supply of printers and a decrease in the quantity demanded of printers. c. a decrease in the equilibrium price of printers and an increase in the equilibrium quantity of printers. d. an increase in the equilibrium price of printers and a decrease in the equilibrium quantity of printers. ____ 61. If the supply of a product decreases, then we would expect a. equilibrium price to increase and equilibrium quantity to decrease. b. equilibrium price to decrease and equilibrium quantity to increase. c. equilibrium price and equilibrium quantity both to increase. d. equilibrium price and equilibrium quantity both to decrease. ____ 62. A decrease in input costs to firms in a market will result in a. a decrease in equilibrium price and an increase in equilibrium quantity. b. a decrease in equilibrium price and a decrease in equilibrium quantity. c. an increase in equilibrium price and a decrease in equilibrium quantity. d. an increase in equilibrium price and an increase in equilibrium quantity. ____ 63. An early frost in the vineyards of Napa Valley would cause a. an increase in the demand for wine, increasing price. b. an increase in the supply of wine, decreasing price. c. a decrease in the demand for wine, decreasing price. d. a decrease in the supply of wine, increasing price. ____ 64. Suppose that demand for a good increases and, at the same time, supply of the good decreases. What would happen in the market for the good? a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. b. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. ____ 65. A weaker demand together with a stronger supply would necessarily result in a. a lower price. b. a higher price. c. an increase in equilibrium quantity. d. a decrease in equilibrium quantity. ____ 66. Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market? a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.

b. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. ____ 67. Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market? a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. b. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. ____ 68. What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up, the price of jelly fell, fewer firms decided to produce peanut butter, and health officials announced that eating peanut butter was good for you? a. Price will fall and the effect on quantity is ambiguous. b. Price will rise and the effect on quantity is ambiguous. c. Quantity will fall and the effect on price is ambiguous. d. Quantity will rise and the effect on price is ambiguous. ____ 69. What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become more expensive, digital cameras become cheaper, the cost of the resources needed to manufacture traditional film falls, and more firms decide to manufacture traditional film? a. Price will fall and the effect on quantity is ambiguous. b. Price will rise and the effect on quantity is ambiguous. c. Quantity will fall and the effect on price is ambiguous. d. Quantity will rise and the effect on price is ambiguous. ____ 70. Equilibrium quantity will unambiguously decrease when a. demand increases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease. b. demand increases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease. c. demand decreases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease. d. demand decreases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease. ____ 71. Equilibrium quantity will unambiguously increase when a. demand increases and supply does not change, when demand does not change and supply increases, and when both demand and supply increase. b. demand increases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease. c. demand decreases and supply does not change, when demand does not change and supply decreases, and when both demand and supply increase. d. demand decreases and supply does not change, when demand does not change and supply

decreases, and when both demand and supply decrease. ____ 72. During the last few decades in the United States, health officials have argued that eating too much beef might be harmful to human health. As a result, there has been a significant decrease in the amount of beef produced. Which of the following best explains the decrease in production? a. Beef producers, concerned about the health of their customers, decided to produce relatively less beef. b. Government officials, concerned about consumer health, ordered beef producers to produce relatively less beef. c. Individual consumers, concerned about their own health, decreased their demand for beef, which lowered the equilibrium price of beef, making it less attractive to produce. d. Anti-beef protesters have made it difficult for both buyers and sellers of beef to meet in the marketplace. ____ 73. Which of the following events would unambiguously cause a decrease in the equilibrium price of cotton shirts? a. an increase in the price of wool shirts and a decrease in the price of raw cotton b. a decrease in the price of wool shirts and a decrease in the price of raw cotton c. an increase in the price of wool shirts and an increase in the price of raw cotton d. a decrease in the price of wool shirts and an increase in the price of raw cotton ____ 74. There is no shortage of scarce resources in a market economy because a. the government makes shortages illegal. b. resources are abundant in market economies. c. prices adjust to eliminate shortages. d. quantity supplied is always greater than quantity demanded in market economies. ____ 75. In a market economy, who or what determines who produces each good and how much is produced? a. the government b. lawyers c. lotteries d. prices

Problem Set #4 Answer Section

MULTIPLE CHOICE 1. ANS: NAT: TOP: 2. ANS: NAT: TOP: 3. ANS: NAT: TOP: 4. ANS: NAT: TOP: 5. ANS: NAT: TOP: 6. ANS: NAT: MSC: 7. ANS: NAT: MSC: 8. ANS: NAT: MSC: 9. ANS: NAT: MSC: 10. ANS: NAT: MSC: 11. ANS: NAT: MSC: 12. ANS: NAT: MSC: 13. ANS: NAT: MSC: 14. ANS: NAT: MSC: 15. ANS: C PTS: Analytic LOC: Market economies A PTS: Analytic LOC: Market economies A PTS: Analytic LOC: Markets MSC: C PTS: Analytic LOC: Competitive markets D PTS: Analytic LOC: Competitive markets C PTS: Analytic LOC: Definitional D PTS: Analytic LOC: Definitional C PTS: Analytic LOC: Applicative B PTS: Analytic LOC: Definitional D PTS: Analytic LOC: Definitional D PTS: Analytic LOC: Definitional A PTS: Analytic LOC: Definitional A PTS: Analytic LOC: Interpretive C PTS: Analytic LOC: Interpretive A PTS: 1 DIF: 1 REF: Markets, market failure, and externalities MSC: Definitional 1 DIF: 1 REF: Markets, market failure, and externalities MSC: Definitional 1 DIF: 1 REF: Markets, market failure, and externalities Definitional 1 DIF: 2 REF: Markets, market failure, and externalities MSC: Interpretive 1 DIF: 1 REF: Markets, market failure, and externalities MSC: Definitional 1 DIF: 1 REF: Perfect competition TOP: 1 DIF: 1 Perfect competition 1 DIF: 2 Perfect competition 1 DIF: 1 Supply and demand 1 DIF: 1 Supply and demand 1 DIF: 1 Supply and demand 1 DIF: 1 Supply and demand 1 DIF: 2 Supply and demand 1 DIF: 2 Supply and demand 1 DIF: 2 4-0

4-0

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4-1 Perfect competition

REF: 4-1 TOP: Perfect competition REF: 4-1 TOP: Perfect competition REF: 4-2 TOP: Quantity demanded REF: 4-2 TOP: Law of demand REF: 4-2 TOP: Demand curve REF: 4-2 TOP: Market demand REF: 4-2 TOP: Demand curve REF: 4-2 TOP: Demand curve REF: 4-2

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NAT: MSC: ANS: NAT: MSC: ANS: NAT: MSC: ANS: NAT: MSC: ANS: NAT: MSC: ANS: NAT: MSC: ANS: NAT: MSC: ANS: NAT: MSC: ANS: NAT: MSC: ANS: NAT: MSC: ANS: NAT: MSC: ANS: NAT: MSC: ANS: NAT: MSC: ANS: NAT: MSC: ANS: NAT: MSC: ANS: NAT: MSC: ANS: NAT:

Analytic Interpretive D Analytic Interpretive B Analytic Applicative A Analytic Definitional B Analytic Applicative D Analytic Definitional C Analytic Applicative A Analytic Definitional C Analytic Interpretive C Analytic Interpretive B Analytic Applicative B Analytic Applicative C Analytic Interpretive B Analytic Applicative B Analytic Applicative D Analytic Definitional B Analytic

LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 1 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 1 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 1 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 1 LOC: Supply and demand PTS: 1 DIF: 1 LOC: Supply and demand

TOP: Demand curve REF: 4-2 TOP: Demand curve REF: 4-2 TOP: Determinants of demand REF: 4-2 TOP: Normal goods REF: 4-2 TOP: Normal goods REF: 4-2 TOP: Inferior goods REF: 4-2 TOP: Inferior goods REF: 4-2 TOP: Substitutes REF: 4-2 TOP: Substitutes REF: 4-2 TOP: Complements REF: 4-2 TOP: Complements REF: 4-2 TOP: Tastes REF: 4-2 TOP: Expectations REF: 4-2 TOP: Expectations REF: 4-2 TOP: Expectations REF: 4-3 TOP: Quantity supplied REF: 4-3 TOP: Law of supply

MSC: 32. ANS: NAT: MSC: 33. ANS: NAT: MSC: 34. ANS: NAT: MSC: 35. ANS: NAT: MSC: 36. ANS: NAT: MSC: 37. ANS: NAT: MSC: 38. ANS: NAT: MSC: 39. ANS: NAT: MSC: 40. ANS: NAT: MSC: 41. ANS: NAT: MSC: 42. ANS: NAT: MSC: 43. ANS: NAT: MSC: 44. ANS: NAT: 45. ANS: NAT: 46. ANS: NAT: 47. ANS: NAT: 48. ANS: NAT: 49. ANS: NAT:

Definitional D Analytic Interpretive C Analytic Definitional B Analytic Definitional A Analytic Interpretive C Analytic Interpretive D Analytic Interpretive B Analytic Applicative B Analytic Applicative C Analytic Applicative C Analytic Interpretive B Analytic Interpretive B Analytic Applicative D Analytic B Analytic D Analytic C Analytic A Analytic C Analytic

PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 1 LOC: Supply and demand PTS: 1 DIF: 1 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: 1 DIF: 2 LOC: Supply and demand PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: 1 Equilibrium 1 Equilibrium 2 Equilibrium 2 Surpluses 2 Surpluses 2 Surpluses

REF: 4-3 TOP: Law of supply REF: 4-3 TOP: Supply curve REF: 4-3 TOP: Market supply REF: 4-3 TOP: Supply curve REF: 4-3 TOP: Supply curve REF: 4-3 TOP: Supply curve REF: 4-3 TOP: Determinants of supply REF: 4-3 TOP: Input prices REF: 4-3 TOP: Input prices REF: 4-3 TOP: Technology REF: 4-3 TOP: Expectations REF: 4-3 TOP: Expectations REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: 4-4 Definitional 4-4 Definitional 4-4 Interpretive 4-4 Interpretive 4-4 Interpretive 4-4 Interpretive

50. ANS: NAT: 51. ANS: NAT: 52. ANS: NAT: 53. ANS: NAT: 54. ANS: NAT: 55. ANS: NAT: 56. ANS: NAT: 57. ANS: NAT: 58. ANS: NAT: 59. ANS: NAT: 60. ANS: NAT: 61. ANS: NAT: 62. ANS: NAT: 63. ANS: NAT: 64. ANS: NAT: 65. ANS: NAT: 66. ANS: NAT: 67. ANS: NAT: 68. ANS: NAT: 69. ANS: NAT: 70. ANS: NAT: 71. ANS: NAT: 72. ANS: NAT: 73. ANS: NAT: 74. ANS:

C Analytic B Analytic A Analytic C Analytic D Analytic C Analytic B Analytic D Analytic C Analytic C Analytic A Analytic A Analytic A Analytic D Analytic B Analytic A Analytic D Analytic A Analytic B Analytic A Analytic D Analytic A Analytic C Analytic B Analytic C

PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS: LOC: PTS:

1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1 Equilibrium 1

DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF: TOP: DIF:

2 Shortages 2 Shortages 2 Shortages 2 Equilibrium 2 Surpluses 2 Shortages 2 Equilibrium 2 Surpluses 3 Shortages 2 Equilibrium 2 Equilibrium 2 Equilibrium 2 Equilibrium 2 Equilibrium 2 Equilibrium 2 Equilibrium 2 Equilibrium 2 Equilibrium 3 Equilibrium 3 Equilibrium 3 Equilibrium 3 Equilibrium 2 Equilibrium 2 Equilibrium 1

REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF: MSC: REF:

4-4 Interpretive 4-4 Interpretive 4-4 Applicative 4-4 Applicative 4-4 Applicative 4-4 Applicative 4-4 Applicative 4-4 Applicative 4-4 Analytical 4-4 Interpretive 4-4 Applicative 4-4 Interpretive 4-4 Interpretive 4-4 Applicative 4-4 Interpretive 4-4 Interpretive 4-4 Interpretive 4-4 Interpretive 4-4 Analytical 4-4 Analytical 4-4 Analytical 4-4 Analytical 4-4 Applicative 4-4 Applicative 4-5

NAT: TOP: 75. ANS: NAT: TOP:

Analytic LOC: Markets, market failure, and externalities Market economies MSC: Definitional D PTS: 1 DIF: 1 REF: 4-5 Analytic LOC: Markets, market failure, and externalities Market economies MSC: Definitional