Quiz chp.3-5 - 1. A market: reflect s upslop ing deman d...

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1. A market:
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reflect s upslop ing deman d and downs loping supply curves. entails the exchan ge of goods, but not service s. is an institut ion that brings togeth er buyers and sellers. always require s face- to-face contac t betwee n buyer and seller.
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2. Graphically, the market demand curve is:
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steeper than any individ ual deman d curve that is part of it. greater than the sum of the individ ual deman d curves. the horizo ntal sum of individ ual deman d curves. the vertica l sum of individ ual deman d curves.
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3. The demand curve shows the relationship between: money incom e and quantit y deman ded. price and produc tion costs. price and quantit y deman ded. consu mer tastes and the quantit y deman ded. 4. The law of demand states that:
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price and quantit y deman ded are invers ely related . the larger the numbe r of buyers in a market , the lower will be produc t price. price and quantit y deman ded are directl y related . consu mers will buy more
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5. In presenting the idea of a demand curve economists presume that the most important variable in determining the quantity demanded is: the price of the produc t itself. consu mer incom e. the prices of related goods. consu mer tastes. 6. An increase in the price of a product will reduce the amount of it purchased because:
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supply curves are upslop ing. the higher price means that real incom es have risen. consu mers will substit ute other produc ts for the one whose price has risen. consu mers substit ute relativ ely high- priced for relativ ely
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7. DVD players and DVDs are: compl ement ary goods. substit ute goods. indepe ndent goods. inferio r goods. 8. If two goods are complements:
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they are consu med indepe ndentl y. an increas e in the price of one will increas e the deman d for the other. a decrea se in the price of one will increas e the deman d for the other. they are necess arily inferio r goods.
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9. If X is a normal good, a rise in money income will shift the: supply curve for X to the left. supply curve for X to the right. deman d curve for X to the left. deman d curve for X to the right. 10. The demand curve for a product might shift as the result of a change in:
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consu mer tastes. consu mer incom es. the prices of related goods. all of these. 11. A decrease in demand is depicted by a:
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move from point x to point y . shift from D 1 to D 2 . shift from D 2 to D 1 . move from point y to point x . 12. A decrease in quantity demanded (as distinct from a decrease in demand) is depicted
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by a: move from point x to point y . shift from D 1 to D 2 . shift from D 2 to D 1 . move from point y to point x . 13. The quantity demanded of a product increases as its price declines because the:
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price shifts the deman d curve rightw ard. lower
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Quiz chp.3-5 - 1. A market: reflect s upslop ing deman d...

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