Question 1

A supply curve:

Accepted Answer

A)  shows the quantity of products that would be demanded at various possible prices. 
B)  is generally up-sloping from left to right. 
C)  is not affected by suppliers' costs. 
D)  generally slopes in the same direction as the demand curve. 
E)  All of the above are true. 
A)  shows the quantity of products that would be demanded at various possible prices. 
B)  is generally up-sloping from left to right. 
C)  is not affected by suppliers' costs. 
D)  generally slopes in the same direction as the demand curve. 
E)  All of the above are true.

Question 2

Oligopoly situations develop when a market has:

Accepted Answer

A)  relatively few buyers. 
B)  elastic industry demand. 
C)  heterogeneous products. 
D)  relatively few sellers. 
E)  All of the above. 
A)  relatively few buyers. 
B)  elastic industry demand. 
C)  heterogeneous products. 
D)  relatively few sellers. 
E)  All of the above.

Question 3

Which of the following statements about demand and supply interaction is TRUE?

Accepted Answer

A)  A market is said to be in equilibrium when the elasticity of demand equals the elasticity of supply. 
B)  For a market to be in equilibrium, the price and quantity that buyers are willing to accept must be greater than the price and quantity that suppliers are willing to offer. 
C)  The interaction of supply and demand determines the size of the market and the market price. 
D)  Demand determines price. 
E)  All of the above are true. 
A)  A market is said to be in equilibrium when the elasticity of demand equals the elasticity of supply. 
B)  For a market to be in equilibrium, the price and quantity that buyers are willing to accept must be greater than the price and quantity that suppliers are willing to offer. 
C)  The interaction of supply and demand determines the size of the market and the market price. 
D)  Demand determines price. 
E)  All of the above are true.

Question 4

The SHORT-RUN market adjustment for a homogeneous product, like wheat, following a decrease in demand would most likely be:

Accepted Answer

A)  an increase in production. 
B)  a decrease in price. 
C)  a decrease in production. 
D)  a decrease in demand for available substitutes. 
E)  an increase in price. 
A)  an increase in production. 
B)  a decrease in price. 
C)  a decrease in production. 
D)  a decrease in demand for available substitutes. 
E)  an increase in price.

Question 5

When few substitutes are available, demand will tend to be more elastic.

Accepted Answer

A) True 
 B)False

Question 6

Pure competition exists when a market has homogeneous products, many buyers and sellers, and ease of entry for buyers and sellers.

Accepted Answer

A) True 
 B)False

Question 7

The elasticity of demand for a particular product depends upon:

Accepted Answer

A)  the importance of the item in each customer's budget. 
B)  the urgency of the target customers' needs. 
C)  the availability of substitutes. 
D)  All of the above. 
E)  None of the above. 
A)  the importance of the item in each customer's budget. 
B)  the urgency of the target customers' needs. 
C)  the availability of substitutes. 
D)  All of the above. 
E)  None of the above.

Question 8

A demand curve is a graph of the relationship between price and quantity in a market--assuming that all other things stay the same.

Accepted Answer

A) True 
 B)False

Question 9

"Consumer surplus" means that:

Accepted Answer

A)  consumers just get their money's worth in any transaction. 
B)  consumers don't consume all the products they buy. 
C)  the price consumers have to pay is more than the value to them. 
D)  some consumers get more than their money's worth because they would be willing to pay more than the equilibrium price if they had to. 
E)  there are more consumers than products to satisfy them. 
A)  consumers just get their money's worth in any transaction. 
B)  consumers don't consume all the products they buy. 
C)  the price consumers have to pay is more than the value to them. 
D)  some consumers get more than their money's worth because they would be willing to pay more than the equilibrium price if they had to. 
E)  there are more consumers than products to satisfy them.

Question 10

In monopolistic competition, individual firms have down-sloping demand curves.

Accepted Answer

A) True 
 B)False

Question 11

In an oligopoly situation, a "price war" will cause all sellers to lose sales revenue.

Accepted Answer

A) True 
 B)False

Question 12

A demand curve:

Accepted Answer

A)  shows what quantities would be supplied at various possible prices. 
B)  shows how total revenue increases as prices decrease. 
C)  is usually up-sloping from left to right. 
D)  is formed by plotting the data from a demand schedule. 
E)  All of the above are true. 
A)  shows what quantities would be supplied at various possible prices. 
B)  shows how total revenue increases as prices decrease. 
C)  is usually up-sloping from left to right. 
D)  is formed by plotting the data from a demand schedule. 
E)  All of the above are true.

Question 13

Oligopoly conditions develop when a market has homogeneous products, a fairly inelastic industry demand curve, and relatively few sellers.

Accepted Answer

A) True 
 B)False

Question 14

Monopolistic competition develops when a market is dominated by one large seller and a lot of small firms.

Accepted Answer

A) True 
 B)False

A supply curve:

Oligopoly situations develop when a market has:

Which of the following statements about demand and supply interaction is TRUE?

The SHORT-RUN market adjustment for a homogeneous product, like wheat, following a decrease in demand would most likely be:

When few substitutes are available, demand will tend to be more elastic.

Pure competition exists when a market has homogeneous products, many buyers and sellers, and ease of entry for buyers and sellers.

The elasticity of demand for a particular product depends upon:

A demand curve is a graph of the relationship between price and quantity in a market--assuming that all other things stay the same.

"Consumer surplus" means that:

In monopolistic competition, individual firms have down-sloping demand curves.

In an oligopoly situation, a "price war" will cause all sellers to lose sales revenue.

A demand curve:

Oligopoly conditions develop when a market has homogeneous products, a fairly inelastic industry demand curve, and relatively few sellers.

Monopolistic competition develops when a market is dominated by one large seller and a lot of small firms.

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

Demographic Dimensions of Global Consumer Markets

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers,wholesalers,and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Implementing and Controlling Marketing Plans: Evolution and Revolution

Managing Marketings Link With Other Functional Areas

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Marketing Arithmetic

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Exam 22: Economics Fundamentals

A supply curve:

Oligopoly situations develop when a market has:

Which of the following statements about demand and supply interaction is TRUE?

The SHORT-RUN market adjustment for a homogeneous product, like wheat, following a decrease in demand would most likely be:

When few substitutes are available, demand will tend to be more elastic.

Pure competition exists when a market has homogeneous products, many buyers and sellers, and ease of entry for buyers and sellers.

The elasticity of demand for a particular product depends upon:

A demand curve is a graph of the relationship between price and quantity in a market--assuming that all other things stay the same.

"Consumer surplus" means that:

In monopolistic competition, individual firms have down-sloping demand curves.

In an oligopoly situation, a "price war" will cause all sellers to lose sales revenue.

A demand curve:

Oligopoly conditions develop when a market has homogeneous products, a fairly inelastic industry demand curve, and relatively few sellers.

Monopolistic competition develops when a market is dominated by one large seller and a lot of small firms.

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

Demographic Dimensions of Global Consumer Markets

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers,wholesalers,and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Implementing and Controlling Marketing Plans: Evolution and Revolution

Managing Marketings Link With Other Functional Areas

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Marketing Arithmetic

Filters