Market demand refers to:
A) Total quantity of a good or service demanded by all consumers in a market
B) Quantity of a good demanded by a single consumer
C) Demand for goods produced by firms in the market
D) Supply of goods available in the market
The law of demand states that:
A) Quantity demanded increases as price increases
B) Quantity demanded decreases as price decreases
C) Quantity supplied increases as price increases
D) Quantity supplied decreases as price decreases
Market supply refers to:
A) Total quantity of a good or service supplied by all producers in a market
B) Quantity of a good supplied by a single producer
C) Supply of goods demanded by consumers in the market
D) Demand for goods in the market
Equilibrium price is determined by:
A) Government regulations
B) Market demand only
C) Market supply only
D) Intersection of market demand and supply curves
A decrease in the price of a substitute good will result in:
A) Increase in demand for the substitute good
B) Decrease in demand for the substitute good
C) Increase in demand for the original good
D) No change in demand for either good
Elasticity of demand measures:
A) Quantity demanded as price changes
B) Quantity supplied as price changes
C) Demand for luxury goods
D) Supply of essential goods
Inelastic demand occurs when:
A) Quantity demanded changes proportionately with price changes
B) Quantity demanded changes less than proportionately with price changes
C) Quantity demanded changes more than proportionately with price changes
D) Quantity demanded remains constant
Producer surplus is the difference between:
A) Total revenue and total cost
B) Market price and minimum price
C) Price received and price willing to accept
D) Consumer surplus and producer surplus
A shift in the demand curve could be caused by:
A) Change in consumer income
B) Change in the price of the good
C) Change in consumer preferences
D) All of the above
A price floor set above the equilibrium price will result in:
A) Excess demand
B) Excess supply
C) Market equilibrium
D) Government intervention