Marketing- Chapter 3 Test Review

People's wants and needs are unlimited; in the same way, resources are also unlimited.

The cost of resources is the same no matter what economic system a society uses.

The United States has many characteristics of a market economy.

Individuals who purchase products and services to satisfy needs are producers.

If a need or want is particularly important or strong, a consumer might be willing to spend more money to satisfy it.

If consumers believe there is only one product or brand that meets their needs, they will usually be willing to pay a higher price.

The law of supply states that when the price of a product is increased, less will be supplied; when the price is decreased, more will be supplied.

The point where supply and demand for a product or service is equal is called market price.

The demand curve for businesses in monopolistic competition falls somewhere between that of pure competition and monopoly.

Products that provide great satisfaction have a higher economic utility, while those providing less satisfaction have a lower utility.