Markets And Prices Quiz 3 (25 MCQs)

Quiz Instructions:

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1. Equilibrium prices rise when?

2. The price elasticity of supply for most goods is

3. The market clearing price is also called the

4. A price ceiling placed on the amount people pay for housing is called _____

5. The stage in the product life cycle at which a low price might be charged in order to establish a product in a competitive market is:

6. Any legally set price for a goods or services _____

7. "Wealth of Nations" a book by Adam Smith pushed the importance of

8. An industry that is dominated by a few large firms is _____

9. The Law of Demand states that as price decreases _____

10. What happens when the supply of a good is greater than the demand?

11. What is a market where goods are sold illegally?

12. Supply depends on the willingness and ability of _____

13. A surplus causes

14. What is an important indicator about the relative scarcity of a product or service?

15. Which one of the following best describes the relationship between the demand for air travel and the demand for airline pilots?

16. A product has a price elasticity of supply of +1.5. If its price falls from £10.00 to £8.00, its supply will

17. As price for a good or service goes up, how does that typically affect the quantity demanded?

18. Which of these is most likely to lead directly to a black market?

19. A price ceiling _____

20. A business is likely to charge a high price when:

21. What is the main form of communication between the producer and consumer?

22. If there is a surplus in the market, the price is likely to _____

23. When buyers purchase exactly as much as sellers are willing to sell, what is reached?

24. A price floor _____

25. Profit as a percentage of the selling price