Introduction_Micro_ENGLISH_1

What is the law of demand?

• When the price of goods or services increases, the quantity demanded for those goods or services will decrease, and vice versa.

• The law of demand only applies to luxury goods, not essential goods.

• The law of demand states that the quantity demanded for goods or services remains constant regardless of price changes.

• When the price of goods or services increases, the quantity demanded for those goods or services will increase.

Translate this question to English language.

• Explain the concept of price elasticity of demand.

• Price elasticity of demand measures the responsiveness of quantity demanded to changes in price.

• Price elasticity of demand is equal to income elasticity of demand.

• Price elasticity of demand only applies to luxury goods.

• Price elasticity of demand measures the responsiveness of quantity demanded to changes in price.

How does consumer behavior affect the demand for a product?

• How does consumer behavior affect the demand for a product?

• Consumer behavior affects demand by influencing individual or group preferences, choices, and purchasing decisions.

• Product demand is only influenced by advertising.

• Price is the only factor that affects demand.

Define the concept of production cost.

• Define the concept of production cost.

• The cost incurred by a company to produce a product or provide a service.

• The revenue generated from the sale of a product.

• CEO's salary.

What are the characteristics of a perfectly competitive market structure?

• What are the characteristics of a perfectly competitive market structure?

• Many buyers and few sellers, similar products, imperfect information, high barriers to entry, and market power for individual firms

• Many buyers and few sellers, similar products, imperfect information, high barriers to entry, and market power for individual firms

• Characteristics of a perfectly competitive market structure include many buyers and sellers, identical products, perfect information, low barriers to entry, and no market power for individual firms

What are the factors that can cause a shift in the supply curve?

• Factors that can cause a shift in the supply curve include changes in production costs, technology, government policies, and the number of sellers in the market.

• Weather conditions

• Changes in consumer preferences

• Foreign exchange rates

What is the difference between elastic demand and inelastic demand?

• Elastic demand only applies to luxury goods, while inelastic demand only applies to essential goods.

• Elastic demand refers to small changes in the quantity demanded due to price changes, while inelastic demand refers to significant changes in the quantity demanded due to price changes.

• Elastic demand and inelastic demand are the same and can be used interchangeably.

• Elastic demand refers to significant changes in the quantity demanded due to price changes, while inelastic demand refers to small changes in the quantity demanded due to price changes.

How do income and substitution effects influence consumer choice?

• How do income and substitution effects influence consumer choices?

• They affect the quantity and types of goods and services purchased by consumers.

• They only affect the prices of goods and services purchased by consumers.

• They do not influence consumer choices.

• They only affect the quality of goods and services purchased by consumers.

How does the law of diminishing returns affect production?

• Increasing the marginal product of each additional input unit, thus increasing overall production efficiency.

• Causing a constant increase in the marginal product of each additional input unit, thus increasing overall production efficiency.

• Causing a decrease in the marginal product of each additional input unit, thus decreasing overall production efficiency.

• Having no impact on the marginal product of each additional input unit.

What is the relationship between price and quantity offered?

• Inverse or negative

• Direct or positive

• No relationship

• Random