Micro_tutorial_3

What is a competitive market?

• A market where sellers set the price

• A market with many buyers and sellers of the same good

• A market with only one buyer

• A market controlled by the government

What does the demand curve represent?

• The total amount of goods available

• The quantity consumers are willing to buy at different prices

• The price at which sellers sell their goods

• The income level of buyers

What does the supply curve represent?

• The total number of buyers in the market

• The amount producers are willing to sell at different prices

• The cost of production

• The government's price control

According to the law of demand, what happens when the price of a good increases?

• Quantity demanded increases

• Quantity demanded decreases

• Quantity supplied decreases

• There is no change in demand

Which of the following shifts the demand curve to the right?

• A decrease in the price of a substitute

• A fall in income for normal goods

• A rise in population

• A decrease in tastes and preferences

Which factor does NOT shift the supply curve?

• Changes in input prices

• Technological advancements

• Changes in consumer tastes

• Expectations of future prices

What occurs when the price is set below the equilibrium price?

• Surplus

• Shortage

• Excess supply

• Market equilibrium

A movement along the demand curve occurs due to:

• A change in income

• A change in preferences

• A change in the price of the good

• A change in the number of consumers

If the price of a complement good decreases, the demand for the other good will:

• Decrease

• Stay the same

• Increase

• Fluctuate randomly

The equilibrium price is the price at which:

• The market clears with no surplus or shortage

• Quantity supplied exceeds quantity demanded

• Quantity demanded exceeds quantity supplied

• Buyers control the market