Question : 4.2  How Do Buyers Behave? 1) The quantity demanded of : 1377321

4.2  How Do Buyers Behave?

1) The quantity demanded of a good is:

A) determined independent of the market price.

B) always determined by government intervention.

C) the amount of a good that sellers are willing to supply at a given market price.

D) the amount of a good that buyers are willing to purchase at a given market price.

2) The demand schedule for a commodity illustrates how the consumption of a commodity changes with changes in:

A) supply.

B) income.

C) its price.

D) tastes and preferences.

3) The ________ plots the relationship between prices and the quantity that buyers are willing to purchase.

A) isoquant

B) supply curve

C) demand curve

D) indifference curve

4) The demand curve for most goods is normally:

A) upward sloping.

B) downward sloping.

C) parallel to the vertical axis.

D) parallel to the horizontal axis.

5) Which of the following best describes the difference between a demand curve and a demand schedule?

A) A demand curve can be derived from a demand schedule, but a demand schedule cannot be derived from a demand curve.

B) A demand curve is a graphical representation of the relationship between the quantity of a good and its price, whereas a demand schedule is a tabular representation.

C) A demand curve shows different quantities of a good demanded at different prices, whereas a demand schedule shows different quantities of a good demanded at different incomes.

D) A demand curve shows different quantities of a good demanded at different incomes, whereas a demand schedule shows different quantities of a good demanded at different prices.  

6) The law of demand states that:

A) the demand for a commodity is mostly influenced by consumers’ income.

B) the demand for a commodity always equals the supply of the commodity.

C) the quantity demanded of a commodity varies inversely with the price of the commodity.

D) the quantity demanded of a commodity is the same for all consumers in a perfectly competitive market.

7) Which of the following examples best describes the law of demand?

A) When John’s income doubles, his telephone bill also doubles.

B) When the price of bread doubles, John’s consumption of bread halves.

C) When the price of watches increases, a local manufacturer starts offering more watches for sale.

D) When a new anti-tobacco commercial is released, the consumption of tobacco products decreases sharply.

8) The willingness to pay for a commodity:

A) decreases as consumption of the commodity increases.

B) increases as consumption of the commodity increases.

C) is always less than the market price of the commodity.

D) is always greater than the market price of the commodity.

9) Which of the following statements is correct about the concept of willingness to pay?

A) The willingness to pay is the lowest price that a buyer is willing to pay for an extra unit of a commodity.

B) The willingness to pay for a commodity increases exponentially as the consumption of the commodity increases.

C) The willingness to pay for a commodity increases linearly as the consumption of the commodity increases.

D) If a consumer is consuming 10 units of a commodity and he is ready to pay $2 for the 11th unit, his willingness to pay for the 11th unit is $2.

10) The buyers of a good will want to purchase it as long as their willingness to pay for the good is:

A) equal to zero.

B) greater than zero.

C) less than the price.

D) greater than or equal to the price.