Question

1. In a competitive market, the quantity of a product produced and the price of the product are determined by a. buyers. b. sellers. c. both buyers and sellers. d. None of the above is correct. 2. Which of the following statements is correct? a. Buyers determine supply and sellers determine demand. b. Buyers determine demand and sellers determine supply. c. Buyers determine both demand and supply d. Sellers determine both demand and supply 3. The demand for a good or service is determined by a. those who buy the good or service b. the government. c. those who sell the good or service. d. both those who buy and those who sell the good or service. 4. An increase in supply is represented by a movement downward and to the left along a supply curve. b. a movement upward and to the right along a supply curve. a rightward shift of a supply curve. a leftward shift of a supply curve 5. A monopoly market is a market in which a. b. there is only one seller there are only a few sellers. the forces of supply and demand do not apply. c. individual buyer or seller has any significant impact on the market price. 6. Define market demand? List three things that would leads to change in demand

Answer 1

1) Option C. Buyers and sellers represent the market demand and supply forces which together act and determine the price and quantity

2) Option B. This is explained in part 1). Buyers determine what amount of good and service they are willing to consume at a given time and price. Sellers determine their willingness to receive and the quantity they are wiling to sell at a given time and price

3) Option C. Buyers determine what amount of good and service they are willing to consume at a given time and price.

4) Option C. When the market supply increases, there is an increase in the quantity supplied at each price so there is a shift of supply curve to the right

5) Option A

Market demand represents the quantity of a good that the buyers are willing to buy at a particular price and time

These determinants are income of consumers, price of related goods and market expectations.