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Figure 3-3                           Good Y ​ ​ Refer to Figure 3-3. A shift in demand from D1 to D2 can NOT occur from a change in the

Suppose that for a given good demand decreases and supply increases at the same time.  If demand decreases by a greater amount than supply increases, then equilibrium price __________ and equilibrium quantity __________ for that good.

19. Thomas Jefferson at 71 years of age wrote to John Adams (who’s 78 at the time) on July 5, 1814: “But our machines have now been running seventy or eighty years, and we must expect that worn as they are, here a pivot, there a wheel, now a pinion, next a spring, will be giving way; and however we may tinker them up for a while, all will at length surcease motions.” Taking Jefferson’s words literally, what lifetime stage was he talking about?

Figure 3-9 ​ ​ ​ Refer to Figure 3-9. Consumers view X and Y as substitutes. If the price of Y increases as a result of a decrease in the supply of Y, an economist would expect a movement in the market for X from

Mutually beneficial trade between buyers and sellers drives a market to equilibrium.

Consider a point on a market demand curve. The point represents

If rice is an inferior good, a decrease in income will cause the equilibrium price of rice to rise.

An increase in supply is graphically represented by a leftward shift of the supply curve.

13. Suppose a reliability demonstration test requires 1000 test units to demonstrate the product’s lifetime target at the 95% confidence level. If we need to demonstrate the same lifetime target at the 90% confidence level, the required number of test units should

Demand takes into account goods, but not services.