EC: 005 Explain the principles of supply and demand.

Question 1

Which of the following is a factor affecting a product’s utility to the individual customer:

Accepted Answer

Consumer's age

Question 2

The price of DVD players increases, the quantity of DVD players offered for sale will increase

Accepted Answer

law of supply

Question 3

One reason why the supply of certain products has been eliminated is because of

Accepted Answer

technology

Question 4

Most businesses strive to supply goods and services in direct proportion to

Accepted Answer

demand

Question 5

What might businesses do if they expect prices to increase substantially in the future?

Accepted Answer

Keep products off the market

Question 6

Which of the following describes inelastic demand:

Accepted Answer

Not affected by price change

Question 7

Mike wants to figure out how much changes in price will affect his sales, so he pays attention

Accepted Answer

elasticity

Question 8

Which of the following is characteristic of a seller’s market:

Accepted Answer

High prices

Question 9

Which of the following factors may influence supply:

Accepted Answer

Natural disasters

Question 10

Demand for a good is more likely to be elastic when the good is

Accepted Answer

a luxury

Question 11

Ty is ready to buy a computer and he has saved up enough money.Which one describes the quantity

Accepted Answer

Demand

Question 12

Which of the following determines whether consumers can purchase goods or services:

Accepted Answer

Buying power

Question 13

Which of the following might cause supply of a good to decrease:

Accepted Answer

Government regulations

Question 14

Neighborhood has many houses for sale at low price but demand is low What kind of market exists

Accepted Answer

Buyer’s

Question 15

The price of complementary products has an effect on

Accepted Answer

demand

Questions 15