Question : 4.1   Demand 1) A market defined as A) a physical place where : 1226403

4.1   Demand

1) A market is defined as

A) a physical place where people buy only goods.

B) a physical place where people buy both goods and services.

C) a store where people buy physical goods.

D) any arrangement that brings buyers and sellers together.

E) a place where one good is bartered for another.

2) EBay

A) will be considered a market when the Internet firms are profitable.

B) is a market because buyers and sellers are brought together to buy and sell.

C) would be a market if there was only one physical location.

D) cannot function as a market.

E) is not a market because buyers can buy from only one seller at any point in time.

3) Which of the following statements is true about a competitive market? A competitive market

A) must have a physical location.

B) includes markets for goods and services but not for inputs.

C) has so many buyers and sellers that no one can influence the price.

D) has one seller competing to sell his or her product.

E) has a handful of sellers but always has many buyers.

4) What is the “quantity demanded”?

A) the amount of a good people desire

B) the amount of a good people are able and willing to buy during a specific time period and at a given price

C) the amount of a good people are able and willing to buy at all possible prices

D) the maximum amount of a good that can be consumed during a specific time period

E) the minimum amount of a good that people are willing to buy during a specific time period and at a given price

5) The “quantity demanded” of any good or service is ________ during a specified time period and at a specified price.

A) the amount people are willing to buy

B) the amount people are able to buy

C) the amount people are willing and able to offer

D) the amount people are willing and able to buy

E) the amount people are willing to buy because it is the amount sellers are willing to sell

6) The “law of demand” refers to the fact that, other things remaining the same, when the price of a good rises,

A) the demand curve shifts rightward.

B) the demand curve shifts leftward.

C) there is a movement down along the demand curve to a larger quantity demanded.

D) there is a movement up along the demand curve to a smaller quantity demanded.

E) the demand curve shifts rightward and there is a movement up along the demand curve to a smaller quantity demanded.

7) The law of demand refers to how

A) demand changes when people’s incomes change.

B) demand changes when the prices of substitutes and complements change.

C) the quantity demanded changes when the price of the good changes.

D) the price of the good changes when people’s demand for the good changes.

E) the quantity demanded changes when the demand for the good changes.

8) Which of the following describes the law of demand? When other things remain the same, as

A) the price of gas falls, the quantity demanded of gas increases.

B) the quantity demanded of bread increases, the price of bread falls.

C) the price of peanut butter increases, the quantity demanded of jelly decreases.

D) your income increases, you’ll buy more hamburgers.

E) more people decide to eat pizza, the demand for pizza increases.

9) Gasoline prices increase by 50 percent and other things remain the same. As a result, there is

A) an increase in the demand for gasoline.

B) a decrease in the demand for gasoline.

C) no change in the quantity of gasoline demanded.

D) a decrease in the quantity of gasoline demanded.

E) More information is needed to determine if the demand for gasoline increases or decreases.

10) In stores, it is common to find seasonal products marked down when the season ends. What explains this behavior?

A) The law of demand is being used to increase the quantity demanded.

B) The store is trying to increase its customers’ demand for the product.

C) The store manager must be trying to drive away customers by selling low quality products.

D) The store is trying to increase its consumer’s incomes by increasing their purchasing power.

E) The store is trying to sell the goods and realizes that they are substitutes for other goods whose prices have risen.