Question

If the number of consumers in a market increases, the market demand curve will

a.	decrease, which is a shift to the left of the demand curve.
b.	increase, which is a shift to the right of the demand curve.
c.	not shift, but rather this will just cause a movement along the demand curve.
d.	do none of the above.

In the competitive price-taker model, all firms in the market are assumed to be producing

	a.	complementary products.
	b.	products that are heavily advertised.
	c.	identical products.
	d.	differentiated products.

Demand will be more inelastic when

	a.	the price of the good is high.
	b.	the number of good substitutes is large.
	c.	the time the consumer has to adjust to price changes is short.
	d.	the good is narrowly defined

Answer 1

W obtion B increase, which ta shift to the Right 1 of the demand aume. in correct option. Because No. of consumes increases mean demands of Good increases which shifted to Righlwand due to LAWS OF DEMAND. other words Fixed Quantity of Good (Short Run) dewanded by large no of consumer e Prices lead to increases @ option [ identical products in correct option in competitive the products are identical which make the price (Homogeneous price ) for all consumes that p= me Because - ③ option & the Good is narrowly defined is correct ophon Because Inelastic dd when dd when price che i little effect ( changes) in Here Good in Harrowly defined i no close substitute a Alting monopoly of a Good which have Prelashe dd prill changes then there Quantity demand mean elined mean there Weate or acting i as have a high