Microeconomics:Demand and Supply

Demand for television increases despite the increase in price is due to a change in _______.

• Supply

• Demand

• Quantity demanded

A decrease in the number of sellers shifts the supply curve to the_______.

• Right

• Left

• Downward

If the cost of production of pork increases, supply curve will shift to the _______.

• Right

• Left

• Upward

An increase in the sales of DVD player will cause the demand for compact disc rentals to ______.

• Increase

• Decrease

• Remain constant

An increase in income will shift the demand curve to the _____.

• Right

• Left

• Downward

Demand reflects the consumer's desire for a commodity.

• True

• False

Price ceiling is a minimum limit beyond which the price of a commodity is not allowed to fall

• True

• False

Assuming other things constant, price is directly proportional to quantity demanded.

• True

• False

The law of supply states that price is inversely proportional to quantity supplied.

• True

• False

Market is a place where buyers and sellers interact and engage in exchange.

• True

• False