chương 4

The forces that make market economies work are

• price and quality.

• price ceiling and floor.

• supply and demand.

• taxes and policies.

The quantity demanded of a good is the amount of good that buyers are

• able to purchase.

• willing, able, and need to purchase.

• willing and able to purchase.

• willing to purchase.

Other things equal, the law of demand states that a fall in

• price causes quantity demanded to increase.

• price causes quantity demanded to decrease

• quantity demanded causes price to increase

• quantity demanded causes price to decrease

A table shows the relationship between………is known as a demand schedule

• quantity demanded and quantity supplied.

• income and quantity demanded.

• price and quantity demanded.

• price and income.

The demand curve for a good is a line that shows relationship between

• price and quantity demanded.

• income and quantity demanded.

• quantity demanded and quantity supplied.

• price and income.

Which the following changes would shift the demand curve for a good or service EXCEPT ?

• a change in income

• a change in the price of the good or service

• a change in expectations about the future price of the good or service

• a change in the price of a related good or service

The law of supply states an increase in the price of a good will

• increase supply

• decrease supply

• increase quantity supplied

• decrease quantity supplied

Sum the individual supply curves horizontally to obtain

• total supply

• market supply

• aggregate supply

• total output

The supply and demand curves intersect at point which is called

• market harmony

• coincidence

• equivalence

• equilibrium

Suppose eggs are currently selling for $50 per dozen, but the equilibrium price of eggs is $40 per dozen. We would expect a

• shortage to exist and the market price of eggs to increase

• shortage to exist and the market price of eggs to decrease

• surplus to exist and the market price of eggs to increase

• surplus to exist and the market price of eggs to decrease