Chapter 4 Demand and Supply Homework Questions
1. How would you expect government involvement in the market for college graduates to affect their market price? Has this happened?
2. Give examples of inferior and superior goods.
3. T F Quantity demanded varies inversely with price andquantity supplied varies directly with price.
4. T F If the price of a good's complement goes down, thesupply of the good will go up.
5. T F A price ceiling keeps prices artificially low and the market reaction is normally an increase in quantity supplied.
6. Demonstrate what happens to price and quantity for each of the four possible equal changes in supply and demand.
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