1. What are the demand schedule and demand curve ans how are they related? Why does the demand curve slope downward?

2. Does a change in consumes' taste lead to a movement along the demand curve or a shift in the demand curve?

3. Popey's income declines, and as a result, he buys more spinach. Is spinach an inferior or a normal good? What happens to popey's demand curve for spinach?

4. What are the supply schedule and the supply curve and how are they related? Why does supply curve slops upward?

5. 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?

6. Katchup is a complement (or a condiment) for hot dogs. If the price of hot dogs rises what happens in the market for katchup? For tomatoes? For tomato juice? For orange juice?

7. Consider the following events: Scientists reveal that eating oranges decreases the risk of diabetes, and at the same time farmers use a new fertilizer that makes orange trees produce more oranges. Illustrate and explain what effect these changes have on the equilibrium quantity and price of oranges.

9. Market research has revealed the following information about the market for chocolate bars:

The demand schedule can be represented by the equation QD = 1600 - 300P

QD is the quantity demanded and P is the price

The supply schedule can be represented by the equation QS = 1,400 + 700P

Where QS is the quantity supplied.

Calculate the equilibrium price and quantity in the market for chocolate bars.

8. Which causes a shortage of a good - a price celling or a price floor?