Chaoter 4 True Or False Flashcards Preview

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

Monopolistic market has only one seller

A

True

2
Q

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

A

True

3
Q

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

A

False

4
Q

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

A

True

5
Q

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

A

True

6
Q

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

A

False

7
Q

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

A

False

8
Q

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

A

True

9
Q

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

A

False

10
Q

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

A

False

11
Q

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

A

True

12
Q

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

A

True

13
Q

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

A

True

14
Q

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

A

False

15
Q

A decrease in the price of soft drinks will increase their demand or rather shift the curve to the right. True or false

A

False quantity demanded, not demand will increase