The price of a new textbook is $60 in one year and is $75 two years later, while the price of a used copy of t?

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The price of a new textbook is $60 in one year and is $75 two years later, while the price of a used copy of the text increased from $20 to $30. The relative price of a new textbook
A) increased from 3 to 4.5.
B) decreased from 0.8 to 0.67.
C) decreased from 3 to 2.5.
D) remained constant.

The law of demand includes the statement "other things being equal." These other things include all of the following except
A) the price of the good itself.
B) the price of related goods.
C) incomes.
D) tastes.

Markets are
A) where prices of goods and services are determined by the forces of supply and demand.
B) specific geographic locations.
C) hypothetical constructs used to analyze how people form their tastes and preferences.
D) places where people can inspect goods and services carefully.

4.
The law of supply includes the statement "other things being equal." These other things include all of the following except
A) resource prices.
B) technology.
C) expectations.
D) consumer's income.
5.
Graphically, the market supply curve is obtained by
A) changing the ceteris paribus conditions.
B) a change in quantity supplied.
C) horizontally summing quantity supplied at various prices for individual producers.
D) vertically summing quantity supplied at various prices for individual producers.
6.
Equilibrium in a market occurs when
A) demand and supply indicate a small surplus of a good.
B) price is at its minimum.
C) quantity supplied and quantity demanded are equal at the market price.
D) the market price leads to a decrease in quantity demanded.
7.
A severe drought has devastated cocoa plants, causing an increase in the price of chocolate. In the market for chocolate chip cookies,
A) a surplus will arise.
B) supply has decreased and price has increased.
C) quantity has decreased and price has decreased.
D) quantity demanded has increased.
8.
The new equilibrium quantity is the same as the old, but the price is lower. We know that
A) demand and supply both increased.
B) demand and supply both decreased.
C) demand increased and supply decreased.
D) demand decreased and supply increased.
9.
Rationing occurs for goods
A) that have a positive price.
B) that have a zero price.
C) that the government decides should be rationed.
D) that are not manufactured.
10.
When the term "price" is used in the law of demand, price is referring to
A) the dollar price of the good.
B) the price of the good relative to the price of another good or relative to the average prices of all other goods.
C) the absolute price of the good.
D) the nominal price of the good relative to its nominal price in the previous year.