Chaoter 4 True Or False Flashcards Preview

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Flashcards in Chaoter 4 True Or False Deck (15):
1

Monopolistic market has only one seller

True

2

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

3

And improvement in technology tends to reduce the supply or shifted to the left

False

4

An increase in Raw material prices tend to reduce the supply or shifted to the left. True or false

True

5

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

6

A perfectly competitive market consist of products that are all slightly different from one another. True or false

False

7

The price is below equilibrium results in excess supply true or false

False

8

Excess demand tends to drive prices up until the market reaches equilibrium price and quantity. True or false

True

9

An increase in supply tends to increase equilibrium price and quantity. True or false

False

10

An equilibrium increase in both supply and demand tends to increase equilibrium price and quantity. True or false

False

11

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

12

The market demand curve is the horizontal summation of all the individual demand curves. True or false

True

13

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

14

Is pizza and hamburgers are substitutes for each other, decrease in price of pizza would increase the demand for hamburgers. True or false

False

15

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