Week 2- Market Forces of Supply and Demand

Question 1

There’s no shortage of scarce resources?

Answer 1

Yes, since prices adjust to eliminate shortage.

Question 2

In competitive market, buyers and sellers…

Answer 2

Are price takers.

Question 3

Charge more?

Answer 3

Buy from someone else.

Question 4

In market economy, supply and demand

Answer 4

Determines the price.

Question 5

Supply and demand runs the economy. They can be used to

Answer 5

Predict the impact of the economy of different events.

Question 6

Market clearing price aka

Answer 6

Equilibrium.

Question 7

Quantity demanded of a good-

Answer 7

Is the amount that buyers are willing to purchase.

Question 8

Competitive market have so many sellers that-

Answer 8

Each has a negligible impact on the price of the product.

Question 9

Demand schedule-

Answer 9

Relationship between price and quantity demanded.

Question 10

Supply schedule-

Answer 10

Shows quantity supplied at a range of different prices.

Question 11

Perfect competition-

Answer 11

Highest form of competition.

Question 12

Demand of a good determined by-

Answer 12

Those who buy the goods.

Question 13

In competitive market, each sellers has limited control over the price since-

Answer 13

Other sellers are offering similar products.

Question 14

Supply curve-

Answer 14

Line that relates prices of a good and quantity supplied of that goods.

Question 15

Demand curve-

Answer 15

Line that relates the price of a good and quantity demanded.