Business Essentials 2.02 It's the Law

Marcy is ready to buy a new computer, and she has saved up enough money to buy the model she wants. This is an example of

• Demand

• Elasticity

• Supply

• Market price

Jeremy has $15,000 to spend on a new car. He found a car that cost $14,500, but he did not think the car was worth more than $12,000. The dealer told Jeremy that he has not been able to sell this model because other customers have expressed the same opinion as Jeremy. Does demand for this exist?

• Yes, because consumers like the car but don't buy it

• Yes, because consumers think the car is worth $12,000.

• No, because consumers do not have the buying power to purchase this car

• No, because consumers are not willing to pay the price being asked for this car

The quantity of a good or service that producers are able and willing to offer for sale at a specified price in a given period of time is

• Quantity demanded

• Quantity sold

• Demand

• Supply

When the price of Bluetooth speakers increases, the quantity of Bluetooth speakers offered for sale will increase. This is an example of the law of

• Supply

• Cost of production

• Demand

• Standardization

Your business is selling more and more large-screen televisions each month. Applying the law of supply and demand, what do you expect to happen to the price and supply of these televisions, over the next few months?

• The price will decrease, and supply will increase

• The price will decrease, and supply will decrease

• The price will increase, and supply will decrease

• The price will increase, and supply will increase

A local neighborhood has many houses for sale at a low price, but demand for the houses is low. What kind of market most likely exists in the neighborhood?

• Sellers

• Buyers

• Inelastic

• Discretionary

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

• Supply

• Elasticity

• Competitors

Orlando changes the price 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

• Imported

• A luxury

• A necessity

• Inexpensive