Ch 3 Individual Markets: Demand And Supply
10 Questions
| Total Attempts: 1109
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For every demand there must be a supply and if the demand for a product or service exceeds the supply there is a gap in the market. The quiz below is a study test for the Ch. 3 McConnell and Brue 15 ed on individual markets. Take it up and see how well you understood the chapter.
Questions and Answers
- 1.A market is any arrangement that brings together the buyers and sellers of a particular good or service.
- A.
True
- B.
False
- 2.Demand is the amount of a good or service that a buyer will purchase at a particular price.
- A.
True
- B.
False
- 3.The law of demand states that as price increases, other thing being equal, the quantity of the product demanded increases.
- A.
True
- B.
False
- 4.The law of diminishing marginal utility is one explanation of why there is an incerse relationship between price and quantity demanded.
- A.
True
- B.
False
- 5.The substitution effect suggests that, at a lower price, you have the incentive to substitute the more expensive product for similar products which are relatively less expensive.
- A.
True
- B.
False
- 6.The is no difference between individual demand schedules and the market demand schedules.
- A.
True
- B.
False
- 7.In graphing supply and demand schedules, supply is put on the horizontal axis and demand on the vertical axis.
- A.
True
- B.
False
- 8.If price falls, there will be an increase in demand.
- A.
True
- B.
False
- 9.If consumer tastes or preferences for a product decrease, the demand for the product will tend to decrease.
- A.
True
- B.
False
- 10.An increase in income will tend to increase the demand for a product.
- A.
True
- B.
False
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