Supply, Demand, and Market Equilibrium
1)
If a competitive market operates perfectly, it relies on
1)
_______
A)
the number of people buying goods.
B)
the laws of supply and demand.
C)
how many products can be produced for sale.
D)
how much people are willing to pay for the products.
2)
A change in the quantity demanded of a product is the result of a change in:
2)
_______
A)
the price of the product.
B)
the price of related goods.
C)
consumer income.
D)
the cost of producing the product.
3)
A demand curve is defined as the relationship between:
3)
_______
A)
the price of a good and the quantity of that good that consumers are willing to buy.
B)
the price of a good and the quantity of that good that producers are willing to sell.
C)
1
,the income of consumers and the quantity of a good that consumers are willing to buy.
D)
the income of consumers and the quantity of a good that producers are willing to sell.
4)
The law of demand states that the quantity demanded of a product increases as:
4)
_______
A)
consumer income rises.
B)
the prices of other products fall.
C)
the price of the product rises.
D)
the price of the product falls.
5)
Typically, a demand curve will represent what relationship?
5)
______
A)
the current desire for purchases of fad products as opposed to other products
B)
how much the products costs and the quantity of it produced
C)
how many people are willing to buy and the quantities each will purchase
D)
the price and the quantity demanded by the buyers
6)
The Law of Demand can be defined as:
6)
______
A)
a lot of people wanting the same thing.
B)
2
,the higher the price, the smaller the quantity demanded, ceteris paribus.
C)
people are willing to make limited sacrifices to acquire products.
D)
none of the above
7)
In considering the relationships between price and quantity demanded, certeris paribus
directs the economist to assume that:
7)
______
A)
price increases affect quantity.
B)
quantity increases affect prices.
C)
either price or quantity can affect demand.
D)
all other variables remain unchanged.
8)
The market demand curve:
8)
______
A)
shows the relationship between the price of a good and the quantity that all consumers
together are willing to buy.
B)
is drawn assuming that variables such as income and tastes are fixed.
C)
is drawn assuming that the number of consumers is fixed.
D)
all of the above
9)
3
, Suppose that there are only three consumers of a product. At a price of $3 per unit, the
first consumer would buy 6 units of the product, the second consumer would buy 5 units,
and the third consumer would buy 7 units of the product. If you drew a market demand
curve for this product, the quantity demanded at a price of $3 would be:
9)
______
A)
18 units.
B)
11 units.
C)
13 units.
D)
Unable to be determined based on the information provided.
10)
The market demand curve is:
10)
______
A)
negatively sloped.
B)
the sum of the demands of all consumers.
C)
always steeper than an individual demand curve.
D)
Both A and B.
4
1)
If a competitive market operates perfectly, it relies on
1)
_______
A)
the number of people buying goods.
B)
the laws of supply and demand.
C)
how many products can be produced for sale.
D)
how much people are willing to pay for the products.
2)
A change in the quantity demanded of a product is the result of a change in:
2)
_______
A)
the price of the product.
B)
the price of related goods.
C)
consumer income.
D)
the cost of producing the product.
3)
A demand curve is defined as the relationship between:
3)
_______
A)
the price of a good and the quantity of that good that consumers are willing to buy.
B)
the price of a good and the quantity of that good that producers are willing to sell.
C)
1
,the income of consumers and the quantity of a good that consumers are willing to buy.
D)
the income of consumers and the quantity of a good that producers are willing to sell.
4)
The law of demand states that the quantity demanded of a product increases as:
4)
_______
A)
consumer income rises.
B)
the prices of other products fall.
C)
the price of the product rises.
D)
the price of the product falls.
5)
Typically, a demand curve will represent what relationship?
5)
______
A)
the current desire for purchases of fad products as opposed to other products
B)
how much the products costs and the quantity of it produced
C)
how many people are willing to buy and the quantities each will purchase
D)
the price and the quantity demanded by the buyers
6)
The Law of Demand can be defined as:
6)
______
A)
a lot of people wanting the same thing.
B)
2
,the higher the price, the smaller the quantity demanded, ceteris paribus.
C)
people are willing to make limited sacrifices to acquire products.
D)
none of the above
7)
In considering the relationships between price and quantity demanded, certeris paribus
directs the economist to assume that:
7)
______
A)
price increases affect quantity.
B)
quantity increases affect prices.
C)
either price or quantity can affect demand.
D)
all other variables remain unchanged.
8)
The market demand curve:
8)
______
A)
shows the relationship between the price of a good and the quantity that all consumers
together are willing to buy.
B)
is drawn assuming that variables such as income and tastes are fixed.
C)
is drawn assuming that the number of consumers is fixed.
D)
all of the above
9)
3
, Suppose that there are only three consumers of a product. At a price of $3 per unit, the
first consumer would buy 6 units of the product, the second consumer would buy 5 units,
and the third consumer would buy 7 units of the product. If you drew a market demand
curve for this product, the quantity demanded at a price of $3 would be:
9)
______
A)
18 units.
B)
11 units.
C)
13 units.
D)
Unable to be determined based on the information provided.
10)
The market demand curve is:
10)
______
A)
negatively sloped.
B)
the sum of the demands of all consumers.
C)
always steeper than an individual demand curve.
D)
Both A and B.
4
