Marketing Ch. 3

Because wants and needs will never exceed available resources, everyone's wants and needs will be met in a balanced economy.

• True

• False

Consumers have unlimited resources and limited needs and wants.

• True

• False

A private enterprise economy is heavily regulated by government.

• True

• False

The relationship between the quantity of a product that producers are willing and able to provide and the price is known as supply.

• True

• False

Individuals who purchase products and services to satisfy needs are known as consumers.

• True

• False

A larger supply of a product will usually cause consumers to place a higher value on it.

• True

• False

The price of a product is increased, and a smaller quantity is purchased. This illustrates the law of demand.

• True

• False

The law of demand dictates that when the price of a product is decreased, more will be demanded.

• True

• False

An economic market is comprised of  all consumers who will purchase a particular product or service.

• True

• False

The point where supply and demand for a product are equal is known as __.

• Opportunity cost

• Supply curve

• Market price

• Law of demand