Chapter 4 (sample exercise)

Chapter 4 (sample exercise) - Chapter 4 (Multiple...

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Chapter 4 (Multiple Choice)—The Market Forces of Supply and Demand 1. Which of the following is true? a. Buyers determine supply and sellers determine demand. b. Buyers determine demand and sellers determine supply. c. Buyers and sellers as one group determine supply. d. Buyers and sellers as one group determine demand. 2. In a competitive market, each seller has limited control over the price of his product because a. other sellers are offering similar products. b. in competitive markets, buyers have more influence over price than sellers. c. the products sold in competitive markets are generally in abundant supply. d. sellers in competitive markets prefer to meet and set a price that each will profit from. 3. Rank the 4 market types from most to least number of firms. a. Monopoly, perfect competitive, monopolistic competitive, oligopoly. b. Perfect competitive, oligopoly, monopolistic competitive, monopoly. c. Monopoly, oligopoly, monopolistic competitive, perfect competitive. d. Perfect competitive, monopolistic competitive, oligopoly, monopoly. 4. Which of the following would NOT be a determinant of demand? a. the price of related goods b. income c. tastes d. the prices of the inputs used to produce the good 5. Which of the following demonstrates the law of demand? a. Jon buys more pretzels at $1.50 each since he got a $1 raise at work. b. Melissa buys fewer muffins at $0.75 each than at $1 each. c. Dave buys more donuts at $0.25 each than at $0.50 each. d.
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This note was uploaded on 01/07/2010 for the course ECO eco1104 taught by Professor Davidgray during the Fall '09 term at University of Ottawa.

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Chapter 4 (sample exercise) - Chapter 4 (Multiple...

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