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Exhibit 3-21 Demand and supply curves ​ ​ If the market supply increases and, simultaneously, market demand decreases, the new equilibrium will show:

Exhibit 3-18 Supply and demand curves ​ ​ Beginning from an equilibrium at point E1 in Exhibit 3-18, an increase in demand for good X, other things being equal, would move the equilibrium point to:

If a consumer wishes to maximize satisfaction given limited income and MUx/Px < MUy/Py then the consumer should:

If a revenue-maximizing firm is told that the price elasticity of demand is equal to one, it should:

Maris recently got a 15 percent raise. She now purchases 7.5 percent more steak dinners. Maris’ income elasticity for steak dinners is:

During the course of a week, McDonald’s has enough time to hire or layoff workers, but it does not have enough time to expand its kitchen or add an additional seating area. In this situation, McDonald’s:

If a firm enlarges its factory size and realizes higher average costs of production then:

Demand curves are negatively sloped when people buy:

If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then demand is:

Chloe considers flavored and plain sparkling water to be substitutes. Suppose the price of sugar, a key ingredient used to produce flavored sparkling water, falls. According to the substitution effect, which of the following is most likely to occur?