Supply and Demand-Part One

The term price takers refers to buyers and sellers in

• perfectly competitive markets.

• monopolistic markets.

• markets that are regulated by the government.

• markets in which buyers cannot buy all they want and/or sellers cannot sell all they want.

The line that relates the price of a good and the quantity demanded of that good is called the

• demand schedule, and it usually slopes upward

• demand schedule, and it usually slopes downward.

• demand curve, and it usually slopes upward.

• demand curve, and it usually slopes downward.

When we move along a given demand curve,

• only price is held constant.

• income and price are held constant.

• all non price determinants of demand are held constant.

• all determinants of quantity demanded are held constant.

Which of the following would not shift the demand curve for mp3 players?

• a decrease in the price of mp3 players

• a fact that makes mp3 players more popular among 12-25 year olds

• an increase in the price of CDs, a complement for mp3 players

• a decrease in the price of satellite radio, a substitute for mp3 players

If goods A and B are complements, then an increase in the price of good A will result in

• more of good A being sold.

• more of good B being sold.

• less of good B being sold.

• no difference in the quantity sold of either good.

Which of the following is a demand shifter?

• Availability of Resources

• New Technology

• Tastes & Preferences

• Government Subsidies

Which of the following scenarios would shift the demand curve for chicken to the right (increase)?

• A decrease in the number of chicken consumers in the market

• A decrease in the price of chicken

• An increase in the price of beef, a substitute for chicken

• A change of consumers' tastes towards beef

A group of buyers and sellers of a particular good or service is called a(n)

• coalition.

• economy

• market

• competition