Microeconomics Ch4- Demand, Supply, and Equilibrium

the demand curve for most goods is normally ____________________

downward sloping

which of the following is likely to lead to a rightward shift in the supply curve of cotton? A- an increase in labor productivity due to training programs B- a rise in labor cost due to wage demands by labor unions C- an increase in the price of cotton D- a decrease in the price of cotton

A- an increase in labor productivity due to training programs

which of the following pairs of goods is likely to be considered substitutes? A- coffee and sugar B-printers and printing ink C- a Ford car and public transportation D-a iPhone and an iPhone charger

C- a Ford car and public transportation

at a price of $1 per table, the quantity supplied of tables is 100 units, whereas the quantity demanded is 70 units. Given this information, which of the following statements is true? A- the equilibrium price is $1 per table B- the market clearing price is $1 per table C- at a price of $1 per table, there is a surplus in the market D- at a price of $1 per table, there is a shortage in the market

C- at a price of $1 per table, there is a surplus in the market

which of the following is NOT a required characteristic of a market? A- a collection of economic agents B- trade or exchange of a good or service C- rules and arrangements for trading D- government setting the price of the good or service

D- government setting the price of the good or service

in a perfectly competitive market, ___________________

all sellers sell an identical good or service

the gasoline market in the United States is often said to be highly competitive. It is not perfectly competitive, but it has features and results that are similar to those of a perfectly competitive market such as __________

an individual buyer cannot influence the market price of gasoline by himself, gas stations located near each other tend to charge the same or very similar prices, and an individual gas station cannot influence the market price by itself

the automobile market in the United States is often said to be highly competitive. But it is not perfectly competitive. What makes this market not perfectly competitive?

different car companies make different vehicles with different features

the buyers of a good will want to purchase it as long as their willingness to pay for the good is ___________________

greater than or equal to the price

two goods are said to be complements when a fall in the price of one good __________________

leads to a leftward shift in the demand for the other good

assume that the seller in a perfectly competitive market charges more than the equilibrium price. It is likely that this seller will _____________

lose almost all of his buyers

a seller's willingness to accept is the same as his _______________ cost of production

marginal

which of the following is true of a market?

price acts as a selection device for buyers and sellers in every market

at the competitive equilibrium, the __________________

quantity demanded is equal to the quantity supplied

the market demand is the _________________ of the individual demand of all the potential buyers

sum

the quantity supplied of a good is ________________

the amount of the good that sellers are ready to supply at a given price

suppose the market for cement is such that the output of all sellers is identical in composition and quality. While there are a large number of buyers and sellers, everyone conducts transactions at a common market price. Which of the following statements is true about the structure of the cement market?

the cement market is perfectly competitive

a seller who is a price taker charges______________

the market price

the law of demand states that _______________

the quantity demanded of a commodity varies inversely with the price of the commodity, all other things remaining constant

the law of supply states that ______________

the quantity supplied of a good rises when the price rises, all other things remaining constant