practice2-2 - 1) Suppose that the quantity supplied of...

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1) Suppose that the quantity supplied of pizza exceeds the quantity demanded for pizza. We would expect that: A) the price of pizza will increase. B) the supply will decrease to meet the demand. C) the price of pizza will decrease. D) the demand will increase to meet the supply. 2) In Figure 4.2, which of the panels depicts a market in which there is an excess demand for a product? A) Panel A. B) Panel B. C) Panel C. D) None of the panels depicts a market in which there is an excess demand for a product. 3) When Tom's income decreases, he purchases more hamburgers. We can conclude that for Tom, hamburger is a(n) ________ good. A) substitute B) complementary C) inferior D) normal 4) Two goods are substitutes if: A) the demand for one good decreases when the price of the other increases. B) the demand for one good decreases when the price of the other decreases. C) the supply of one good decreases when the price of the other increases. D) the supply of one good decreases when the price of the other decreases.
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5) Figure 4.4 illustrates the demand for guitars. An increase in the demand for guitars is represented by the movement from: A) point B to point A. B) point B to point C.
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practice2-2 - 1) Suppose that the quantity supplied of...

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