Micro C. 3
Which of the following consists of a large number of independently acting buyers and sellers?
a perfect competition
The price actually paid for a good is not reflected in the demand because demand is merely:
a statement of buyers' intentions regarding the buying of the good (product)
which of the following causes consumers to buy larger quantities of a product at each possible price?
increase in the number of buyers
All of the following are the determinant of demand, except:
price of substitutes in production
_________, while holding demand constant, results in an increase in the equilibrium price of the good, but the decrease in the equilibrium quantity of the good.
a decrease in the supply of a good
When the price of Coke rises, the demand for Pepsi is likely to _________.
increase
Which of the following are determinants of demands?
1. Consumer income 2. consumer tastes 3. Number of buyers 4. pirces of related goods 5. consumers expectation
Which of the following statements are true?
-an increase in the price of normal good would decrease the quantity demanded of the good -a decrease in consumers' income would decrease the demand for normal good
Which of the following reasons is NOT an explanation for why the demand curves slopes downward and to the right?
As price on the vertical axis increases, quantity demanded on the horizontal axis remains unchanged.
T or F: a shortage occurs when quantity supplied exceeds quantity demanded.
F
T/F: a price at or above the price floor is illegal.
F
T/F: changes in the determinants of demand will cause a movement along the demand curve.
F
T/F: if the demand for a good increase when consumer income rise, then the good is considered "inferior"
F
T/F: in the supply and demand model, quantity demanded is illustrated on the vertical axis, while price is illustrated on the horizontal axis.
F
Which of the following refers to a particular apportionment or mix of good s and services most highly valued by society?
allocative efficiency
the fundamental characteristic of demand, other things equal, is:
as price falls, the quantity demanded rises
Which of the following specifically refers to demand?
buyer side of any market
The inverse relationship between price and quantity demanded can be shown graphically by _________ sloping curve.
downward
a price ___________ (floor/ceiling) is the maximum legal price a seller may charge for a product or service.
ceiling
the determinants of demand, others things equal, are assumed to be _________ when a demand curve is drawn or computed.
constant
One of the determinants of demand is _____ expectations.
consumer
When the price of a product falls, demands for its substitute will
decrease
Change in the number of buyers is a determinant of market ______.
demand
Other things equal, the amount of a product that will be purchase at various possible prices is shown by:
demand
a shortage results from an excess of quantity ______________.
demanded
the willingness and ability of a consumer to buy a normal product falls because of:
fall in income
All of the following illustrate a market, except:
farmer sharing his surplus wheat w/ neighbors
Which of the following is a complement to hamburger patties?
hamburger buns
Which of the following statements correctly describes the relationship between the price and quantity demanded of a good or service?
holding all else constant, as price increases, quantity demanded decreases and as price decreases, quantity demanded increases
A favorable change in consumer tastes and preferences for a product will _________ (increase/decrease) demand, illustrated as a shift of the demand curve to the __________ (right/left).
increase; right
The vast majority of goods that are not related to one another are called _______ goods.
independent
The law of demand describe a(n) ______________ relationship between the price of a good or service and the quantity demanded of that good or service.
invers
A demand curve shows the:
inverse relationship between price and quantity demanded for a product
Diminishing _______ states that, in any specific time period, buyers will derive less satisfaction from each additional unit of the product consumed.
marginal utility
a consumer's willingness to purchase in a market must be supported by the ability to make the purchase as evidenced by:
necessary dollars
An inverse relationship between two variables is a(n) ____ relationship.
negative
a change in demand occurs due to a change in a consumer's state of mind about purchasing a product that is based on something other than the ___________ of the product.
price
Supply refers to the _______ of the products and demand refers to the ________ of the products.
producers; buyers
Competition among corn producers forces them to use the best technology and right mix of productive resources; otherwise their costs will be too high relative to the market price and they will be unprofitable. This is be described as:
productive efficiency
The price of ________ goods is a determinant of demand
related
A demand ____________ organizes the relationship between price and quantity in a tabular format, whereas the demand ___________ is a graphical representation of this relationship.
schedule; curve
A change in demand is represented by a _________ the demand curve while a change in quantity demanded is represented by a _________ the demand curve.
shift of; movement along
A_________ the demand curve represent a change in demand while a __________ the demand curve represents in the quantity demanded.
shift of; movement along
For every good or service, the quantities demanded by individual consumers at every price are added together to compute the following:
the market demand curve for a good or service
T/F: the inverse relationship between price and quantity demanded is called the law of supply
F
T or F: a change in quantity demanded is caused by an increase or decrease in the price of the product under consideration and nothing else.
T
T&F: A surplus is when quantity supplied exceeds quantity demanded.
T
T/F: when the price of one product rises, the demand for its substitute will increase.
T
Which pair exemplifies substitute goods?
hot dogs and hamburgers
which of the following is a determinant of demand?
income
Products whose demand varies directly with changes in money income are called normal or ___________ goods.
superior
An increase in __________ , while holding demand constant, results in a decrease in equilibrium price, but an increase in equilibrium quantity.
supply