Determining Market Price Answers

10 verified answers
1
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A supply schedule shows how prices affect the

A
quality of a good.
B
overall economy of a country.
C
quantity of a good supplied by a producer.
D
unemployment rate.
2
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demandsupplyquantityproduction

A
demand
B
supply
C
quantity
D
production
4

Which best describes the role the availability of resources plays when a company is considering whether to produce a certain good?

A
Resources can always be obtained, no matter what the cost.
B
If a resource is difficult to obtain, production costs will be high.
C
Resources play no part in a company’s decision to produce a good.
D
If a resource is easy to obtain, production costs will be high.
5

Which factors must a producer consider when deciding what good to supply? Check all that apply.the appeal of the good to family membersthe elasticity of a good being suppliedcompetition within the marketthe ability to produce the good efficientlythe ability to produce a good of low quality

A
the appeal of the good to family members
B
the elasticity of a good being supplied
C
competition within the market
D
the ability to produce the good efficiently
E
the ability to produce a good of low quality
6

The amount that a good is sold for is its

A
elasticity.
B
price.
C
profit.
D
supply.
7

In order to compete successfully, a producer must produce goods that are

A
more expensive than those of competitors.
B
of a lesser quality than those of competitors.
C
of a higher quality than those of competitors.
D
created without worrying about the costs of production.
8

All things being equal, when producers sell goods for a lower price, they make

A
more money.
B
the same amount of money.
C
less money.
D
as much money as the law allows.
11

Which best explains why the law of supply operates the way it does in a free enterprise economy?

A
Companies want to produce more goods than their rivals.
B
Companies want to reward loyal consumers with low prices.
C
Companies want to hire as many workers as possible.
D
Companies want to be as profitable as possible.
12

In order to compete successfully, a producer must produce goods that are

A
more expensive than those of competitors.
B
of a lesser quality than those of competitors.
C
of a higher quality than those of competitors.
D
created without worrying about the costs of production.
13

The study of the interaction between individuals and businesses is known as

A
the law of supply.
B
macroeconomics.
C
microeconomics.
D
elasticity.
14

When prices for homes rise, why might construction companies decide to build more homes?

A
to increase employment
B
to make a profit
C
to create a need for more resources
D
to boost name recognition
15

This graph shows a supply curve.What happens when the price of a good increases?

Question illustration
A
The quantity of goods that are produced increases.
B
The producer of the good is certain to make less money.
C
The quantity of goods that are produced decreases.
D
The quantity of goods that are produced stays about the same.
16

The law of supply states that as the price of a good rises, the quantity supplied of that good

A
disappears.
B
decreases.
C
remains the same.
D
increases.
17

The law of supply demonstrates the behaviors of producers when they

A
change their company’s name.
B
decide to hire fewer workers.
C
supply goods to consumers.
D
launch a new marketing campaign.
18

Which best describes the role the availability of resources plays when a company is considering whether to produce a certain good?

A
Resources can always be obtained, no matter what the cost.
B
If a resource is difficult to obtain, production costs will be high.
C
Resources play no part in a company’s decision to produce a good.
D
If a resource is easy to obtain, production costs will be high.
19

The graph shows a supply curve.Which change is illustrated by the shift taking place on this graph?

Question illustration
A
an increase in demand
B
a decrease in demand
C
an increase in supply
D
a decrease in supply
20

Which factors must a producer consider when deciding what good to supply? Check all that apply.the appeal of the good to family membersthe elasticity of a good being suppliedcompetition within the marketthe ability to produce the good efficientlythe ability to produce a good of low quality

A
the appeal of the good to family members
B
the elasticity of a good being supplied
C
competition within the market
D
the ability to produce the good efficiently
E
the ability to produce a good of low quality

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