Question : 4.1   Demand 1) A market defined as A) a physical place where : 1238381

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) If Mark tries to purchase a new refrigerator in a perfectly competitive market, then

A) he will find himself constantly haggling with sellers over the price.

B) he will have only a few sellers available to him.

C) he will have a very limited ability to negotiate over the price.

D) he will see large differences in the types of refrigerators sold across sellers.

E) None of the above is correct.

5) In a perfectly competitive market, an individual ________ has ________ influence over the market price of the good or service being sold.

A) buyer; basically no

B) seller; basically no

C) buyer; a great deal of

D) seller; a great deal of

E) Both A and B are correct.

6) Assume that the market for consumer gasoline is perfectly competitive.  When one additional seller (gas station) enters the market,

A) the price of gasoline increases.

B) the price of gasoline decreases.

C) the price of gasoline is left unaffected.

D) then at least one other seller must exit the market.

E) None of the above is correct.

7) 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

8) 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

9) 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.

10) 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.