It's the Law LAP Test

1. Moira is ready to buy a new laptop, and she has saved up enough money to buy the model she wants. This is an example of

• 1. demand.

• 1. elasticity.

• 1. supply.

• 1. market price.

1. 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?

• 1. Yes, because consumers like the car but don’t buy it.

• 1. Yes, because consumers think the car is worth $12,000.

• 1. No, because consumers do not have the buying power to purchase this car.

• 1. No, because consumers are not willing to pay the price being asked for this car.

1. 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

• 1. quantity demanded.

• 1. quantity sold

• 1. demand.

• 1. supply.

1. 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

• 1. supply.

• 1. cost of production.

• 1. demand.

• 1. standardization.

1. Your business is selling more and more gaming consoles each month. Applying the law of supply and demand, what do you expect to happen to the price and supply of these gaming consoles over the next few months?

• 1. The price will decrease, and supply will increase.

• 1. The price will decrease, and supply will decrease.

• 1. The price will increase, and supply will decrease.

• 1. The price will increase, and supply will increase.

1. 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?

• 1. Seller’s

• 1. Buyer’s

• 1. Inelastic

• 1. Discretionary

1. Which of the following is characteristic of a seller’s market:

• 1. Small demand

• 1. High prices

• 1. Low profits

• 1. Large supply

1. Mercy wants to figure out how much changes in price will affect her business’s sales, so she pays attention to

• 1. market price.

• 1. supply.

• 1. elasticity.

• 1. competitors.

1. 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

• 1. constant.

• 1. inelastic.

• 1. competitive.

• 1. elastic.

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

• 1. imported.

• 1. a luxury.

• 1. a necessity.

• 1. inexpensive.