What is a competitive market? Briefly describe a type of market that is not perfectly competitive.
What are the demand schedule and the demand curve, and how are they related? Why does the demand curve slope downward?
Does a change in consumers' tastes lead to a movement along the demand curve or a shift in the demand curve? Does a change in price lead to a movement along the demand curve or a shift in the demand curve? Explain your answers.
Popeye's income declines, and as a result, he buys more spinach. Is spinach an inferior or a normal good? What happens to Popeye's demand curve for spinach?
What are the supply schedule and the supply curve, and how are they related? Why does the supply curve slope upward?
Does a change in producers' technology lead to a movement along the supply curve or a shift in the supply curve? Does a change in price lead to a movement along the supply curve or a shift in the supply curve?
Define the equilibrium of a market. Describe the forces that move a market toward its equilibrium.
Beer and pizza are complements because they are often enjoyed together. When the price of beer rises, what happens to the supply, demand, quantity supplied, quantity demanded, and price in the market for pizza?
Describe the role of prices in market economies.