ScienceEconomicsChapter 4 example #86371
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Chapter 4

Jayda Brown avatar Jayda Brown
2 October 2022
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In a competitive market, the quantity of a product produced and the price of the product are determined by
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all buyers and all sellers
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In a perfectly competitive market, at the market price
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buyers can buy all they want and sellers can sell all they want.
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A demand schedule is a table that shows the relationship between
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price and quantity demanded.
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Which of the following does not affect an individual's demand curve?
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the number of buyers
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A decrease in supply is represented by
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a leftward shift of a supply curve.
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Which of the following events will definitely cause equilibrium price to fall?
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demand decreases and supply increases
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he signals that guide the allocation of resources in a market economy are
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prices.
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There is no shortage of scarce resources in a market economy because
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prices adjust to eliminate shortages.
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There is no shortage of scarce resources in a market economy because
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prices adjust to eliminate shortages.
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Who gets scarce resources in a market economy?
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whoever is willing and able to pay the price
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Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?
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Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
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A movement upward and to the right along a supply curve is called
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an increase in quantity supplied.
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Which of the following would not shift the supply curve for mp3 players?
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an increase in the price of mp3 players
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The law of demand states that, other things equal
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an increase in price causes quantity demanded to decrease.
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Which of the following would not shift the supply curve for mp3 players?
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an increase in the price of mp3 players
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A movement upward and to the right along a supply curve is called
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an increase in quantity supplied.
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Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?
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Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous
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Who gets scarce resources in a market economy?
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whoever is willing and able to pay the price
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There is no shortage of scarce resources in a market economy because
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prices adjust to eliminate shortages
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The sum of all the individual demand curves for a product is called
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market demand.
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A market supply curve shows
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the total quantity supplied at all possible prices.
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Suppose that demand for a good increases and, at the same time, supply of the good decreases. What would happen in the market for the good?
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Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous