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

• small demand

• high prices

• low profits

• large supply

Marc wants to figure out how much changes in price will affect his business’s sales, so he pays attention to

• market price

• inelastic demand

• elasticity

• elastic demand

Orlando changes the price of one of his products, and this price change leads to a major change in the number of people who purchase the product. This means that demand for Orlando’s product is

• constant

• inelastic

• competitive

• elastic

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

• essential

• a luxury

• a necessity

• inexpensive

Which of the following describes inelastic demand:

• limited to luxury goods

• not affected by price change

• fluctuating

• variable

Even though gasoline prices increased 15 cents per gallon as the result of the new gas tax, Alice continued to buy gas so that she could make her 20-mile drive to work. This is an example of what type of demand?

• discretionary

• elastic

• inelastic

• complementary

A team of employees is responsible for researching potential demand for a business’s brand-new product. The factor that is most likely to affect demand for this product is the

• product's utility

• costs of production

• government's policy

• number of producers

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

• number of producers

• number of consumers

• price of other goods

• consumer's age

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

• buying power

• labor costs

• competition

• production costs

The price of complementary products has an effect on

• elasticity

• supply

• utlity

• demand