A market's equilibrium is the point at which the supply and demand curves intersect.

True

False

Individual supply curves are summed vertically to obtain the market supply curve.

True

False

In a competitive market, the quantity of each good produced and the price at which it is sold are not determined by any single buyer or seller.

True

False

In a market economy, prices are the signals that guide the allocation of scarce resources.

True

False

Local cable television companies frequently are monopolists.

True

False

A decrease in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

True

False

A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for blueberry muffins.

True

False

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

True

False

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

a. supply of bicycles will shift to the left.

b. supply of bicycles will shift to the right.

c. demand for bicycle assembly workers will increase.

d. firm must increase output to maintain profit levels.

Which of the following isnotan example of a market?

a. A small town has only one seller of electricity.

b. In Florida, there are many buyers and sellers of key lime pie.

c. In the United States, a sick person cannot legally purchase a kidney.

d. The availability of Internet shopping has expanded the clothing choices for buyers who do not live near large cities.

A group of buyers and sellers of a particular good or service is called

a. a market.

b. a competition.

c. a coalition.

d. an economy.

The quantity supplied of a good is the amount that

a. buyers are willing and able to purchase.

b. sellers are able to produce.

c. sellers are willing and able to sell.

d. buyers and sellers agree will be brought to market.

If something happens to alter the quantity supplied at any given price, then

a. the supply curve shifts.

b. we move along the supply curve.

c. the supply curve becomes steeper.

d. the supply curve becomes flatter.

The law of supply states that, other things equal, when the price of a good

a. falls, the quantity supplied of the good rises.

b. rises, the supply of the good falls.

c. falls, the supply of the good rises.

d. rises, the quantity supplied of the good rises.