Question : 41.Ceteris paribus means: A. Nothing allowed to change. B. The determinants of demand may : 1233068

41.Ceteris paribus means:   

A. Nothing is allowed to change.

B. The determinants of demand may change, but all else must be held constant.

C. Only one determinant is being changed while all others remain unchanged.

D. Consumers try to keep all things constant so that prices will be lower.

42.According to the law of demand:   

A. If consumer’s income increases, the demand curve will shift to the right.

B. As the price of a good rises, the quantity demanded will increase in a given time period, ceteris paribus.

C. As the price of a good falls, the quantity supplied will increase in a given time period, ceteris paribus.

D. As the price of a good falls, the quantity demanded will increase in a given time period, ceteris paribus.

43.The law of demand states that quantity demanded increases in a given time period if:   

A. The price of the good falls.

B. Incomes increase.

C. Preferences change.

D. Expectations improve.

44.The law of demand explains why people:   

A. Crave certain goods.

B. Are willing to buy more of a good as price falls.

C. Are willing to pay more as marginal utility diminishes.

D. Are able to buy more of a good as supply increases.

45.Ceteris paribus, a demand curve shows the:   

A. Quantity of a good that producers are willing to bring to market.

B. Prices a consumer and producer can both agree upon.

C. Quantity of a good consumers are willing and able to purchase at alternative prices.

D. Change in quantity demanded divided by the change in price.

46.The downward slope of the demand curve is related to the:   

A. Law of diminishing total returns.

B. Law of diminishing marginal utility.

C. Upward sloping supply curve.

D. Opportunity cost of producing the good.

47.The demand curve is downward sloping because:   

A. Producers are willing to supply more of the good only at higher prices.

B. Consumers are willing to buy less of the good only at lower prices.

C. Producers are willing to supply more of the good only at lower prices.

D. Consumers are willing to buy more of the good only at lower prices.

48.Price elasticity of demand shows how:   

A. To compute the slope of the demand curve.

B. Quantity demanded responds to price changes.

C. Quantity demanded responds to changes in the price of other goods.

D. Price responds to demand changes.

49.The response of quantity demanded to price changes is shown by:   

A. Price elasticity of demand.

B. The determinants of demand.

C. Opportunity cost.

D. Income elasticity of demand.

50.Which of the following statements is NOT correct?   

A. If demand is unitary elastic an increase in the price of a good will not change total revenue.

B. If demand is elastic a higher price will actually decrease total revenue.

C. Total revenue will fall if consumer’s response to a price cut is large.

D. If the relative change in price is greater than the relative change in the quantity demanded associated with it, demand is inelastic.