Price, which is determined by all buyers and sellers as they interact in the marketplace, allocates the economy's scarce resources.
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True.
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A market is a group of buyers and sellers of a particular product.
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True.
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In a perfectly competitive market, buyers and sellers are price setters.
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False. In a perfectly competitive market, buyers and sellers are price takers.
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If a good or service has only one seller, it is called an oligopoly.
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False. If a good or service has only one seller, it is called an monopoly.
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The computer software industry is an example of monopolistic competition.
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True.
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A local cable TV company might be a monopolist.
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True.
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The quantity demand of a product is the amount that buyers are willing and able to purchase at a particular price.
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True.
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The law of demand states that the quantity demand of a product is positively related to price.
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False. The law of demand states that the quantity demand of a product is NEGATIVELY related to price.
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The market demand is the average of all of the individual demands for a particular good or service.
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False. The market demand is the SUM of all of the individual demands for a particular good or service.
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If the demand for a good falls when income falls, the good is called an inferior.
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False. If the demand for a good falls when income falls, the good is normal.
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When an increase in the price of one good lowers the demand for another good, the two goods are called compliments.
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True.
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Baseballs and Baseball bats are substitute goods.
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False. Baseballs and Baseball bats are COMPLIMENT goods.
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An increase in the price of pizza will shift the demand cure for pizza to the left.
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False. An increase in the price of pizza will shift the demand cure for pizza to the RIGHT.
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Whenever a determinant of demand other than price changes, the demand curve shifts.
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True.
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A reduction in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.
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False.
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The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.
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True.
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The law of supply states that other things equal, when the price of a good rises, the quantity supplied of the good falls.
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False. The law of supply states that other things equal, when the price of a good rises, the quantity supplied of the good RISES.
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If a company making frozen orange juice expects the price of their product to be higher next month, they will supply more to the market this month.
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False. If a company making frozen orange juice expects the price of their product to be higher next month, they will supply LESS to the market this month.
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A supply curve slopes upward because, all else equal, a higher price means a greater quantity supplied.
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True. (Law of supply)
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A movement along a supply curve is called a change in supply while a shift of the curve is called a change in quantity supplied.
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False. A movement along a supply curve is called a change in quantity supplied.
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If there is an improvement in the technology of producing a product, the supply curve for that product will shift to the left.
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False. If there is an improvement in the technology of producing a product, the supply curve for that product will shift to the RIGHT.
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A reduction in an input price will cause a change in quantity supplied, but not a change in supply.
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False. A reduction in an input price will cause a change in supply.
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Quantity demand is equal to quantity supplied, at the equilibrium price.
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True.
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Surpluses drive price up while shortages drive price down.
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False. Surpluses drive price DOWN while shortages drive price UP.
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A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.
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True.
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It is not possible for demand and supply to shift at the same time.
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False. It IS possible for demand and supply to shift at the same time.
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In a market, the price of any good adjusts until quantity demanded equals quantity supplied.
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True.
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The behavior of buyers and sellers drives markets toward equilibrium.
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True.
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In a perfectly competitive market, buyers and sellers are price takers.
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True.
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If a good or service has only one seller, it is called an monopoly.
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True.
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The law of demand states that the quantity demand of a product is negatively related to price.
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True.
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The market demand is the sum of all of the individual demands for a particular good or service.
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True.
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Baseballs and Baseball bats are compliment goods.
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True.
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An increase in the price of pizza will shift the demand cure for pizza to the right.
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True.
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The law of supply states that other things equal, when the price of a good rises, the quantity supplied of the good rises.
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True.
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If a company making frozen orange juice expects the price of their product to be higher next month, they will supply less to the market this month.
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True.
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A movement along a supply curve is called a change in quantity supplied.
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True.
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If there is an improvement in the technology of producing a product, the supply curve for that product will shift to the right.
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True.
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A reduction in an input price will cause a change in supply.
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True.
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Surpluses drive price down while shortages drive price up.
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True.
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It is possible for demand and supply to shift at the same time.
answer
True.
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