Quiz2 - ECO 201 QUIZ 2 Dr. Antonio Saravia Multiple Choice...

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ECO 201 QUIZ 2 Dr. Antonio Saravia Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. In a free market, who determines how much of a good will be sold and the price at which it is sold? a. suppliers b. demanders c. the government d. suppliers and demanders together ____ 2. What is the law of demand? a. When the price of a good falls, buyers respond by purchasing more. b. When income levels increase, buyers respond by purchasing more. c. When buyers tastes for the good increase, they purchase more of the good. d. When the price of a good or service rises, buyers respond by purchasing more. ____ 3. Suppose that the incomes of buyers in a particular market for a normal good decline and there is also a reduction in input prices. What would we expect to occur in this market? a. The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous. b.
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This note was uploaded on 04/18/2008 for the course ECO 201 taught by Professor Saravia during the Spring '08 term at American University of Sharjah.

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Quiz2 - ECO 201 QUIZ 2 Dr. Antonio Saravia Multiple Choice...

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