EC-011 Pretest

Which of the following factors affects consumers' decisions to buy goods or services:

buying power

Demand is likely to be most elastic for which of the following:

concert tickets

What is the primary factor that determines supply?

cost of production

When demand is greater than supply, higher prices can be charged because consumers are willing to pay more to obtain the product. This is known as

a seller's market.

What creates demand for goods and services?

Ability and desire of consumers to buy goods and services

Which of the following would affect demand for a consumer magazine:

The usefulness of the magazine

In economics, supply refers to the quantity of a good or service that sellers

are willing to sell at a specified price.

Which of the following has inelastic demand:

bread

As prices decrease, consumer demand usually

increases.

Producers are willing to manufacture more of a product when

its selling price is increased.