Question

1) Which of the following statements correctly describes a competitive market?

A) sometimes, a single seller has the ability to dictate the market price

B) the market price is determined by the interaction of demand and supply

C) the market price for the same good varies from seller to seller.

D) buyers and sellers negotiate prices before making exchanges

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

A) supply B) its price

C) tastes and preferences D) income

3) The demand curve for most goods is normally :

A) downward sloping B) parallel to the horizontal axis

C) parallel to the vertical axis D) upward sloping

4) The law of demand states that

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

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

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

D) the demand for a commodity always equals the supply of the commodity

Answer 1

a) "B"

The market price is determined by the demand and supply of the goods and services.

b) "B"

It shows how the demand changes when the price in the market changes.

c) "A"

The demand curve are mostly downward sloping.

d) "C"

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