Standard 2 Indicator 2.01 LAP 011

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 car 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

• demand

• quantity sold

• 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

• demand

• cost of production

• 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?

• Seller's

• Buyer's

• 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 one 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

• competitive

• inelastic

• elastic

Demand for a good is more likely to be elastic when the good is

• imported

• a luxury

• a necessity

• inexpensive