Microeconomic Exam

A perfectly competitive market consists of products that are all slightly different from each other

• True
• False

A monopolistic market has only one seller

• True
• False

The law of demand states that an increase in the price of a good decreases the demand for that good

• True
• False

If apples and oranges are substitute goods, an increase in the price of apples will decrease the demand for oranges

• True
• False

If golf balls and golf clubs are complementary goods, an increase in the price of golf clubs will decrease the demand for golf balls

• True
• False

If consumers expect the price of shoes to rise in the future, there will be an increase in the demand for shoes today

• True
• False

The law of supply states that an increase in the price of a good increases the quantity supplied of that good

• True
• False

An increase in the price of steel will shift the supply of automobiles to the right

• True
• False

When the price of a good is below the equilibrium price, it causes a surplus

• True
• False

The market supply curve is the horizontal summation of the individual supply curves

• True
• False