1 Textbook Reading Comprehension Questions: Unit II (sections 1-4)
1.Which of the following is the Latin term for “everything else held constant”?
1.Carpe Diem 2.Vice versa 3.Ceteris Paribus 4.None of the above 5.All of the above
2.How is the market price for a good determined in a competitive market?
3.What does the Law of Demand state?
4.What does the Law of Supply state?
5.For the law of demand to be observed in a market, what factors should be held constant?
1.Price and quantities of the good demanded 2.Price and consumers’ income 3.Consumers’ income and preferences 4.Quantities of the good demanded and consumers’ preferences 5.Price and consumers’ preferences
If a market is not currently in equilibrium, we can get to the equilibrium outcome by: