Exhibit 4-2 Supply and demand curves
Beginning from an equilibrium at point E1 in Exhibit 4-2, an increase in demand for good X, other things being equal, would move the equilibrium point to:

Cross-price elasticity refers to:

A. how much the quantity demanded of one good changes in response to a change in the price of a different good. B. how much the quantity demanded of one good changes in response to a change in its price. C. the magnitude of the shift in demand for a good in response to a change in its price. D. how much the quantity demanded of a good changes in response to a change in consumers' incomes.

Potential output:

A. is purely a physical phenomenon. B. requires the purchase of new equipment. C. is related to the long-term growth trend. D. requires government expenditures.