Dril chapters 4

Dril Chapters 4
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Unformatted text preview: Dril Chapters 4-6 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. The highest form of competition is called a. absolute competition. b. cutthroat competition. c. perfect competition. d. market competition. ____ 2. A decrease in quantity demanded a. results in a movement downward and to the right along a demand curve. b. results in a movement upward and to the left along a demand curve. c. shifts the demand curve to the left. d. shifts the demand curve to the right. ____ 3. The law of demand states that, other things equal, an increase in a. price causes quantity demanded to increase. b. price causes quantity demanded to decrease. c. quantity demanded causes price to increase. d. quantity demanded causes price to decrease. ____ 4. Which of the following demonstrates the law of demand? a. After Jon got a raise at work, he bought more pretzels at $1.50 per pretzel than he did before his raise. b. Melissa buys fewer muffins at $0.75 per muffin than at $1 per muffin, other things equal. c. Dave buys more donuts at $0.25 per donut than at $0.50 per donut, other things equal. d. Kendra buys fewer Snickers at $0.60 per Snickers after the price of Milky Ways falls to $0.50 per Milky Way. Table 4-2 Price Williams Quantity Demanded Fergies Quantity Demanded Taboos Quantity Demanded apl.de.aps Quantity Demanded $12 2 1 3 4 $10 4 4 4 5 $8 6 7 5 6 $6 8 8 4 7 $4 10 9 3 8 $2 12 10 2 9 ____ 5. Refer to Table 4-2 . Whose demand does not obey the law of demand? a. Williams b. Fergies c. Taboos d. apl.de.aps ____ 6. Suppose Spencer and Kate are the only two demanders of lemonade. Each month, Spencer buys six glasses of lemonade when the price is $1.00 per glass, and he buys four glasses when the price is $1.50 per glass. Each month, Kate buys four glasses of lemonade when the price is $1.00 per glass, and she buys two glasses when the price is $1.50 per glass. Which of the following points is on the market demand curve? Point Price Quantity A $1.00 4 B $1.00 10 C $1.50 2 D $1.50 6 a. B only b. B and D only c. A and C only d. D only Table 4-3 Price Berts Quantity Demanded Ernies Quantity Demanded Grovers Quantity Demanded Oscars Quantity Demanded $0.00 20 16 4 8 $0.50 18 12 6 6 $1.00 14 10 2 5 $1.50 12 8 4 $2.00 6 6 2 $2.50 4 ____ 7. Refer to Table 4-3 . If these are the only four buyers in the market, then the market quantity demanded at a price of $1 is a. 4 units. b. 7.75 units. c. 14 units. d. 31 units. ____ 8. A rightward shift of a demand curve is called a(n) a. increase in demand. b. decrease in demand. c. decrease in quantity demanded. d. increase in quantity demanded. ____ 9. Holding the nonprice determinants of demand constant, a change in price would a. result in either a decrease in demand or an increase in demand....
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