Business Essentials

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

• supply

• demand

• elasticity

• market price

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

• demand

• elasticity

• market price

• supply

A team of employees is responsible for researching potential demand for a business’s brand-new product. The factor that is most likely to affect demand for this product is the

• product’s utility.

• costs of production.

• government’s policy.

• number of producers.

Which of the following is a factor affecting a product’s utility to the individual customer:

• Number of producers

• Number of consumers

• Price of other goods

• Consumer’s age

Which of the following determines whether consumers can purchase goods or services:

• Buying power

• Labor costs

• Competition

• Production costs

The price of complementary products has an effect on

• elasticity.

• supply.

• utility.

• demand.

For 20 years, Don owned a small grocery store. When several big box stores that sell groceries at discounted prices moved into the area, Don’s sales declined, and he had to close his business. Which of the factors that affect supply affected Don’s business?

• Natural disasters

• Government regulation

• Labor demands

• Number of producers

A company that transforms cotton into wearable clothing is considered a

• manufacturer.

• raw-goods producer.

• service business.

• builder.

The two main divisions of the trade industry are

• wholesalers and retailers.

• producers and retailers.

• manufacturers and wholesalers.

• wholesalers and producers.

Retailing takes place whenever goods are

• offered for sale.

• exchanged for other goods.

• sold to the ultimate consumer.

• sold in a retail establishment.