SYND 1 4 79 ANTI-NUCLEAR DEMONSTRATION AT HANOVER OVER BUILDING OF REPROCESSING PLANT

What is the primary role of price in a market?

• To establish brand identity

• To set the production cost

• To act as a signal for supply and demand

• To determine the quality of a product

Which of the following is a factor that influences price determination?

• Consumer preferences

• Weather conditions

• Historical events

• Technological advancements

How does an increase in price generally affect consumer behavior?

• Increases demand

• Decreases demand

• Has no effect

• Increases supply

What is a potential market reaction to a sudden drop in prices?

• Increased consumer spending

• Decreased product availability

• Higher production costs

• Stable market conditions

Which of the following best describes the relationship between price and market equilibrium?

• Price has no effect on market equilibrium

• Price helps achieve market equilibrium

• Price disrupts market equilibrium

• Price is irrelevant to market equilibrium