EC 11/12 Quiz

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

• elasticity

• supply

• demand

• marketplace

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 car exist?

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

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

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

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

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 sold.

• demand.

• supply.

• quantity demanded.

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

• standardization

• cost of production

• supply

• demand

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 increase, and supply will decrease.

• The price will decrease, 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?

• Buyer’s

• Inelastic

• Discretionary

• Seller’s

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

• Low profits

• High prices

• Large supply

• Small demand

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

• competitors.

• supply.

• elasticity.

• market price.

Which of the following describes inelastic demand:

• Not affected by price change

• Variable

• Limited to luxury goods

• Fluctuating

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