Economics Quiz 3

In a competitive market, the quantity of a product produced and the price of the product are determined by

• a single buyer.

• a single seller.

• one buyer and one seller working together.

• all buyers and all sellers.

In competitive markets, buyers

• are price takers, but sellers are price setters.

• are price setters, but sellers are price takers.

• and sellers are price takers.

• and sellers are price setters.

If buyers and sellers in a certain market are price takers, then individually

• they have no influence on market price.

• they have some influence on market price but that influence is limited.

• buyers will be able to find prices lower than those determined in the market.

• sellers will find it difficult to sell all they want to sell at the market price.

A decrease in quantity demanded

• results in a movement downward and to the right along a demand curve.

• results in a movement upward and to the left along a demand curve.

• shifts the demand curve to the left.

• shifts the demand curve to the right.

Refer to Figure 4-1. The movement from point A to point B on the graph shows a(n)

• decrease in demand.

• increase in demand.

• decrease in quantity demanded.

• increase in quantity demanded.

Which of the following demonstrates the law of demand?

• After Jon got a raise at work, he bought more pretzels at $1.50 per pretzel than he did before his raise.

• Melissa buys fewer muffins at $0.75 per muffin than at $1 per muffin, other things equal.

• Dave buys more donuts at $0.25 per donut than at $0.50 per donut, other things equal.

• Kendra buys fewer Snickers at $0.60 per Snickers after the price of Milky Ways falls to $0.50 per Milky Way.

Refer to Table 4-1. If the market consists of Michelle, Laura, and Hillary and the price falls by $1, the quantity demanded in the market increases by

• 2 units.

• 3 units.

• 4 units.

• 5 units.

Refer to Figure 4-16. The shift from S to S' is called a(n)

• decrease in supply.

• decrease in quantity supplied.

• increase in supply.

• increase in quantity supplied.

Refer to Figure 4-16. The shift from S to S' could be caused by an

• increase in the price of the good.

• improvement in production technology.

• increase in income.

• increase in input prices.

Refer to Figure 4-14. Which of the following best describes the movement from E1 to E2?

• a decrease in supply

• an increase in supply

• a movement along the supply curve

• a decrease in demand