Answer and explain the ff.
1. An increase in the number of consumers can cause? a. The demand curve to shift left b. The demand curve to shift right c. The demand curve to shift up d. Diminishing returns 2. A change in price of a good causes people to buy more or less of an item. This best describes the concept of? a. The demand curve b. Change in quantity demanded c- Change in demand d. Elasticity 3. Elasticity refers to? a. How producers of goods and services react to price changes b. How consumers of goods and services react to price changes c. Hovllr far a supply of scarce goods can be stretched d. How often the price of a good or services changes when quantity demanded changes 4. What does the elasticity of demand measures? a. How the changes in prices affects the global economy 13. How customers react to changes in price 0. How customers react to changes in quality D. None of the above 5.The reason why Chevrolet cars are very elastic is because? a. They can easily replaced by other cars 13. No matter price, people will always choose Chevrolet d. None of the above 6. Some factors that affect price elasticity are? a. The number of substitutes and how dependant you are on the good to. The number of customers and producers of the good c. How dependant you are and the quality of the good d. None of the above 10. The main reason why individuals consume goods and service is? a. To increase demand in. To increase personal satisfaction 0. To drive the economy d. None of these 11. If there is a surplus what will price do? a. Decrease b. Stabilize c. Fluctuate d. Increase 12. States that people buy a different product if the product's price changes, appearing as a movement along the demand curve. a. Change in demand to. Change in supply c. Change in quantity demanded d. Change in quantity supplied 13. Which of the ff is the best example of law of supply? a. Milling company builds a new factory to process flour for export 33. Catering company buys a new dishwasher to make their works easier c. Food producer increases the number of acres of wheat he grows to supply a milling company d. Sandwich shop increases number of sandwiches they suplly everyday when the price is increased 14. How does new technology affect supply? a. Decreases supply b. Increases supply because it increases cost c. it lowers cost and increases supply d. It has very little effect on production. 15. Demand is almost always more elastic at higher prices and less elastic at lower prices. a. True 13. False 16. Since the elasticity of demand is downward sloping the elasticity should always be negative. a. True b. False 17. During recession there are more spare capacity meaning there will be more resources unused due to less demand from the customers a. True b. False 18. Firms producing perishable items with less warehousing facility will be able to respond to increase in price and they can supply more to meet the increase in demand a. True h. False 19. Needs are more elastic than wants a. True is. False 20. Supply is more price elastic if more time is available as the firms can adjust the supply and increase the supply when price are increasing a. True b. False 21. The elasticity matters because it affects company's revenue a. True b. False 22. In elastic demand, as the price increases, total revenue will increase a. True b. False 23. In elastic demand, as the price decreases, total revenue will stay the same a. True I). False 7. A key determinant of the price elasticity of supply is? a. The ability to change the price of the good they produce b. The ability of sellers to change the amount of the good they produce c. How responsive buyers are to changes in sellers prices d. The slope of the demand curve 8. When the price is more and the firms are able to produce more to take the benefit of this increase in prioe,then supply is said to be? a. Elastic b. Inelastic c. Unitary Elasticity d. None of the above 9. Products like pencils, books and other school stationaries are easy to store in a warehouse. If a firm producing such goods and has a good warehousing facilities and can supply more when prices are rising, then supply will be? a. Elastic b. Inelastic c. Unitary Elastic d. None of the above
