MicroChapter4 - RikkiNorton Microeconomics Chapter4...

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Rikki Norton Microeconomics Chapter 4 Questions for Review (1, 2, 5, 9) 1. The supply schedule is a table that shows the relationship between the price of a good and  the quantity supplied. While the supply curve is a graph of the relationship between the price of  a good and the quantity supplied. The supply schedule is related to the supply curve because  they use the numbers provided in the schedule table to produce the supply curve. The supply  curve slopes upward because a higher price means a greater quantity supplied.  2. The role of prices in market economies depend on whether it’s a demand price or supply  price. According to the law of demand when the price of a product falls the quantity demanded  rises. According to the law of supply when the price of a good rises the quantity supplied rises.  They also depend of substitutes, which is when two goods for which an increase in the price of  one leads to an increase in the demand for the other, and complements, which is when two  goods for which an increase in the price of one leads to a decrease in the demand for the other.  5. A change in the consumers’ tastes lead to a shift in the demand curve, because if the 
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This note was uploaded on 03/14/2011 for the course POLSCI 1123 taught by Professor Thompson during the Spring '11 term at Oklahoma State.

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MicroChapter4 - RikkiNorton Microeconomics Chapter4...

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