EC-011

which of the following factors affects consumers' decisions to buy goods or services: a. competition b. production costs c. labor costs d. buying power

buying power

Marc wants to figure out how much changes in price will affect his business's sales, so he pays attention to a. competitors b. market price c. elasticity d. supply

elasticity

Your business is selling more and more large/screen televisions each month. Applying the law of supply and demand, what do you expect to happen to the price and supply of these televisions over the next few months? a. The price will increase, and supply will decrease b. The price will increase, and supply will increase c. The price will decrease and supply will increase d. The price will decrease and supply will decrease

The price will increase, and supply will increase

which of the following would affect demand for a consumer magazine: a. the cost of advertising in the magazine b. The usefulness of the magazine c. The magazine's delivered circulation d. The number of inserts in the magazine

The usefulness of the magazine

Which of the following determines whether consumers can purchase goods or services: a. competition b. buying power c. labor costs d. production costs

buying power

Demand for a good is more likely to be elastic when the good is a. inexpensive b. a luxury c. imported d. a necessity

a luxury

when demand is greater than supply, higher prices can be charge because consumers are willing to pay more to obtain the product. This is known as a. discretionary income b. A seller's market c. a buyer's market d. product utility

a seller's market

what creates demand for goods and services? a. ability and desire of consumers to buy goods and services b. total amount of goods or services available for sale c. Number of competitors selling the goods and services d. Price at which consumers will buy goods and services

ability and desire of consumers to buy goods and services

in economics, supply refers to the quantity of a good or service that sellers a. keep in stock for future sale b. are willing to buy in a certain time period c. need to operate a business d. are willing to sell at a specified price

are willing to sell at a specified price

which of the following has inelastic demand: a. movie tickets b. televisions c. ice cream d. bread

bread

A local neighborhood has many houses for sale at a low price, but demand for the houses is low. What kind of market most likely exists in the neighborhood? a. discretionary b. buyer's c. inelastic d. seller's

buyer's

demand is likely to be more elastic for which of the following: a. concert tickets b. ground beef c. footwear d. bread

concert tickets

Which of the following is a factor affecting a product's utility to the individual customer: a. number of consumers b. number of producers c. price of other goods d. consumer's age

consumer's age

Your firm is considering producing a new product. Research shows that there is definitely a demand for the product and there are currently only two other producers of this product. Which of the following might prevent your firm from producing this product: a. product utility b. cost of production c. consumer expectations d. promotional considerations

cost of production

what is the primary factor that determines supply? a. cost of production b. product characteristics c. consumer income d. product utility

cost of production

Marcy is ready to buy a new computer, and she has saved up enough money to buy the model she wants. This is an example of a. supply b. elasticity c. demand d. market price

demand

Most businesses drive to supply good and services in direct proportion to a. standard of living b. demand c. supply d. cost of production

demand

The price of complementary products has an effect on a. elasticity b. utility c. demand d. supply

demand

Orlando changes the price of one of his products, and this Price change leads to a major change in the number of people who purchased the product. This means that demand for Orlando's project is a. inelastic b. constant c. competitive d. elastic

elastic

When less expensive substitutes for a product or readily available, then demand for the product is likely to be more a. complementary b. elastic c. inelastic d. urgent

elastic

Which of the following might cause supply of a good to decrease: a. inelastic demand b. government regulations c. sales skills d. advertising

government regulations

Which of the following is a characteristic of a sellers market: a. high prices b. large supply c. low profits d. small demand

high prices

as prices decrease, consumer demand usually a. increases b. stabilizes c. stays the same d. decreases

increases

Even though gasoline prices increase 15 cents per gallon as a result of a new gas tax, Alice continued to buy gas so that she could make her 20 mile drive to work. This is an example of what type of demand? a. inelastic b. elastic c. discretionary d. complementary

inelastic

producers are willing to manufacture more of a product when a. demand for the product is decreased b. production costs are increased c. it's selling price is decreased d. it's selling price is increased

it's selling price is increased

What might businesses do if they expect prices to increase substantially in the future? a. keep products off the market b. ship more products to stores c. increase production now d. encourage consumers to buy

keep products off the market

Which of the following factors may influence supply: a. standard of living b. number of consumers c. natural disasters d. product utility

natural disasters

Jeremy has $15,000 to spend on a new car. He found a car that cost $14,500, but he did not think the car was worth more than $12,000. The dealer told Jeremy that he has not been able to sell this model because other customers have expressed the same opinion as Jeremy. Does demand for this car exist? a. no, because consumers are not willing to pay the price being asked for this car b. yes, because consumers think the car is worth $12,000 c. no, because consumers do not have the buying power to purchase this car d. yes, because consumers like the car but don't buy it

no, because consumers are not willing to pay the price being asked for this car

Which of the following describes inelastic demand: a. variable b. limited to luxury goods c. fluctuating d. not affected by price change

not affected by price change

For 20 years, Don owned a small grocery store. When several big box stores that sell groceries at discounted prices moved into the area, Don's sales declined, and he had to close his business. Which of the factors that affect supply affected Don's business? a. labor demands b. natural disasters c. government regulation d. number of producers

number of producers

A team of employees is responsible for researching potential demand for a business's is brand-new product. The factor that is most likely to affect demand for this product is the a. costs of production b. product's utility c. government's policy d. number of producers

product's utility

People often buy goods and services in order to maintain the quality of life and general living conditions to which they are accustomed. This influence on demand is referred to as a. personal selling b. standard of living c. quality control d. quality standards

standard of living

The quantity of a good or service that producers are able and willing to offer for sale at a specified price in a given period of time is a. quantity sold b. supply c. quantity demanded d. demand

supply

When the price of Bluetooth speakers increases, the quantity of Bluetooth speakers offered for sale will increase. This is an example of the law of a. demand b. supply c. standardization d. cost of production

supply

One reason why the supply of certain products has been eliminated is because of a. technology b. buying power c. elasticity d. production methods

technology