Markets And Prices Quiz 4 (8 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. An established minimum price that buyers must pay for a good or service is known as what?

Correct Answer: B) Price Floor.

2. 'Price high-Sales volume low and high profit margins'. This strategy occurs in what kind of market?

Correct Answer: B) A niche market.

3. Two goods with a XED of +0.7 are ..... for each other than two goods with a XED of +0.3.

Correct Answer: B) Stronger substitutes.

4. In a mass market, the price will be what?

Correct Answer: D) Kept low in order to fight off the competition.

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

Correct Answer: B) Surplus.

6. If you have a shift right of supply due to improvements in technology, then .....

Correct Answer: A) Price would go down.

7. The Law of Demand states that as quantity demanded decreases .....

Correct Answer: D) Price increases.

8. When there is an increase in prices, which of the following would a buyer be motivated to do?

Correct Answer: C) Both of these.