BOP L5

What is a market?

• A place where buyers and sellers meet to exchange goods and services.

• A place where people go to watch movies.

• A place where animals are kept.

• A place where people go to exercise.

What are markets all about?

• Voluntary Exchange

• Mandatory Exchange

• Forced Exchange

• Random Exchange

What happens when consumers are willing to purchase a product and producers are willing to sell the same product?

• Voluntary exchange

• Involuntary exchange

• Forced exchange

• Random exchange

What are the two fundamental economic concepts that govern the behavior of buyers and sellers in a market?

• Supply and demand

• Price and cost

• Profit and loss

• Goods and services

What does the term "demand" represent?

• The quantity of a good or service consumers are willing and able to buy at a given price in a given time period.

• The amount of money consumers have to spend.

• The number of products a company can produce.

• The price of a product in the market.

What happens to the quantity demanded when the price of a good or service increases?

• The quantity demanded increases.

• The quantity demanded decreases.

• The quantity demanded stays the same.

• The quantity demanded doubles.

What is the relationship between the price of a product and the quantity that consumers are willing and able to purchase?

• Direct relationship

• Inverse relationship

• No relationship

• Positive relationship

According to the Law of Demand, what happens when the price of a good or service decreases?

• The quantity demanded decreases.

• The quantity demanded increases.

• The quantity demanded stays the same.

• The quantity demanded becomes zero.

On which axis is the price plotted in a demand curve?

• X axis

• Y axis

• Z axis

• W axis

On which axis is the quantity plotted in a demand curve?

• X axis

• Y axis

• Z axis

• W axis