EPF Supply and Demand

Question 1

What are the non-price determinants of demand? (can cause demand to shift)

Accepted Answer

Substitute goods, future expectations, Complementary Goods, Taste and Preference

Question 2

An example of an elastic product is gasoline

Accepted Answer

False

Question 3

the place where supply and demand meet is called

Accepted Answer

equilibrium

Question 4

If the price of butter increases, the demand for margarine will increase

Accepted Answer

True

Question 5

Price inelastic demand is typical for goods or services that......

Accepted Answer

have no substitutes

Question 6

Price floor is a price control that limits the minimum price a company is allows to charge for a product or service

Accepted Answer

True

Question 7

Maximum legal price a seller may charge for a product or service

Accepted Answer

price ceiling

Question 8

Minimum wage is an example of a

Accepted Answer

price floor

Question 9

Rent control is an example of a price ceiling

Accepted Answer

True

Question 10

Elasticity describes the degree to which buyers and sellers respond to price changes

Accepted Answer

True

Question 11

Supply and demand determine the prices at which goods are bought and sold

Accepted Answer

TRUE

Question 12

Demand is the willingness and ability to bring a product to market at different prices in a specific time period

Accepted Answer

False

Question 13

The demand curve goes......

Accepted Answer

DOWN

Question 14

Amount of good that buyers are willing and able to purchase is....

Accepted Answer

DEMAND

Question 15

The supply curve goes.....

Accepted Answer

UP

Question 16

The price of pasta increases, the demand for pasta sauce will increase

Accepted Answer

False

Question 17

Price is what determines the quantity that an individual will demand

Accepted Answer

True

Questions 17