Question

1. All other things equal, according to the law of demand, when the price of a good falls, ________.

the demand for the good falls

the demand for the good rises

the quantity demanded of the good falls

the quantity demanded of the good rises

2. When a market is in equilibrium, the quantity of the good that buyers are willing and able to buy ________.

exactly equals the quantity that sellers are willing and able to sell

cannot be determined

is less than the quantity that sellers are willing and able to sell

is greater than the quantity that sellers are willing and able to sell

3. Which of the following factors does NOT influence the demand for a good or service?

Consumer (buyer) income

The price of related goods

The number of sellers

Buyer expectations

4. When the number of sellers in a market increases, ________.

demand rises

supply rises

the price rises, all else equal

the number of buyers falls

Answer 1

1 D) The quantity demanded of the goods rise

Three exist the indirect relationship between demand and goods.Higher the price lower the quantity demanded the price higher the quantity goods demanded.

2) A) exactly equal that quantity sellers willing and able to sell

The intersection of demand and supply determines the market price of the goods and is considered as the equilibrium price.

3) C) The number of sellers

The remaining factors are the option determines the demand.The sellers in the market do not influence demand suppliers to supply goods based on changes in the price.

4) B) Supply Increases

The numbers of suppliers increase in the market supply of goods increase by selling more goods for the higher price and increasing the supply of goods will fall the price of the goods.