Markets And Prices Quiz 1 (25 MCQs)

Quiz Instructions:

Select an option to see the correct answer instantly.

1. _____ and _____ are in competitive supply.

2. Smith believed that the economy operated according to three natural laws involving this concept _____

3. A product has a price elasticity of demand of-0.5. If the price of this product increases by 10%, then total revenue will

4. If you see a widespread and wildly successful ad campaign change people's preferences, "ceteris parabus or everything being equal" _____

5. If you have excess demand, the logical change is to _____

6. When demand is _____, an increase in price causes _____ in total revenue, while a decrease in price causes _____ in total revenue.

7. Which of the following will cause the demand to move along the demand curve rather than shifting it?

8. A new company creating the same product as you would cause _____

9. The equilibrium price in a market

10. If there is a negative value for the cross elasticity of demand between two goods, this means that the two goods are

11. Which of this is an incentive for consumers to buy more?

12. What type of economic system did Adam Smith support?

13. When there is a shortage, which of the following would a seller be motivated to do?

14. A shift to the right of the supply curve for a product can be caused by

15. The equilibrium price is the price at which _____

16. Which of this is an incentive for producers to supply more?

17. The price elasticity of supply of wheat is

18. In a free market, one can expect a company to charge the highest possible prices they can to make the most money due to the concept of _____

19. Price elasticity of supply measures the responsiveness of the quantity supplied to a change in

20. Which of the following would shift the supply curve?

21. At a given price, the amount by which quantity demanded exceeds quantity supplied yields a

22. Producers and Consumers in a mixed economy convey information through:

23. Price ceilings create a(n) _____

24. If a price floor is set above the equilibrium price

25. This is a system in which the government allocates goods and services using factors other than price.