Economics

Question 1

Name some characteristics of Perfect Competition

Answer 1

There are a large number of buyers and sellers
Each seller offers an identical product for sale
There are minimal barrier to entry
Sellers have no pricing power
There is no-price competition in the market

Question 2

Demand in a perfectly Competetive market is ________ sloping.

Answer 2

Downward

Question 3

Name some characteristics of Monopolies

Answer 3

A single seller of highly differentiated product, which has no close substitutes
There are high barrier to entry
The firm has considerable pricing power
The product is differentiated through non-price startegies

Question 4

The demand curve is_____ sloping.

Answer 4

Downward

Question 5

The supply curve is _____ sloping.

Answer 5

Upward

Question 6

What is the demand function?

Answer 6

Q = A + B Price

Question 7

What is the demand curve?

Answer 7

B = X + Y Quantity

Question 8

Above equalibrium is

Answer 8

excess supply

Question 9

Below equalibrium is

Answer 9

excess demand

Question 10

Consumer surplus

Answer 10

Product purchased is more valuable to consumer than what the consumer paid

Question 11

Producer surplus

Answer 11

Product sold is less valuable to producer than what it is sold for