Exam 2: Supply and Demand

If the price of inputs increases, the

If a good is inferior and income increases then

-Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of a decrease in income if a good is considered normal?

Economists know that consumers and producers are both made better off than they would be without free exchange because the exchanges are

Which of the following goods are likely to be considered substitutes?

If a tax (paid by producers)on a good is reduced this would

-Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of an increase in the price of an input in the market for anything?

A market must be in a physical location

Which of the following is true?

If the price is so high that vendors find too many unsold bottles remaining in inventory, they might dispose of their excess inventory by

If the price of a typical good rises, the quantity demanded for that good will

If a good is normal and income decreases then

The quintessential example for the price of another potential output and the impact of the price of one good on the market for another is

On the Heritage Foundation's scale of "Economic Freedom," the least "free" country would be that one who's economic system was purely

-In Figure 2.1, Box 1 would be labeled

A decrease in household income for a good that is considered normal would

Unless circumstances are quite out of the ordinary, a demand curve will be

In the market for birth control devices, if the number of women of child-bearing age increases, the

-From Table 2.3, at the price of $4 there is a

An increase in the excise tax imposed upon consumers of gasoline