Chaoter 4 True Or False Flashcards
Monopolistic market has only one seller
True
At the equilibrium price, the amount that sellers are willing to sell is just equal to the amount the buyers are willing to buy true or false
True
And improvement in technology tends to reduce the supply or shifted to the left
False
An increase in Raw material prices tend to reduce the supply or shifted to the left. True or false
True
It’s sellers expect prices to rise in the future, this could cause prices to rise today by encouraging sellers to reduce their current supply in anticipation of a price hike. True or false
True
A perfectly competitive market consist of products that are all slightly different from one another. True or false
False
The price is below equilibrium results in excess supply true or false
False
Excess demand tends to drive prices up until the market reaches equilibrium price and quantity. True or false
True
An increase in supply tends to increase equilibrium price and quantity. True or false
False
An equilibrium increase in both supply and demand tends to increase equilibrium price and quantity. True or false
False
An increase in supply accompanied by an equal decrease in demand tends to decrease equilibrium price, while leaving equilibrium quantity and changed. True or false
True
The market demand curve is the horizontal summation of all the individual demand curves. True or false
True
If golf clubs and golf balls or complements, then an increase in price of golf clubs with decreased the demand for golf balls. True or false
True
Is pizza and hamburgers are substitutes for each other, decrease in price of pizza would increase the demand for hamburgers. True or false
False
A decrease in the price of soft drinks will increase their demand or rather shift the curve to the right. True or false
False quantity demanded, not demand will increase
