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Individual demand curves are summed horizontally to obtain the market demand curve.

A) True
B) False

Correct Answer

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Sellers respond to a shortage by cutting their prices.

A) True
B) False

Correct Answer

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An increase in the price of cotton will increase the equilibrium price and decrease the equilibrium quantity in the market for cotton t-shirts.

A) True
B) False

Correct Answer

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If something happens to alter the quantity demanded at any given price,then the demand curve shifts.

A) True
B) False

Correct Answer

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Individual demand curves are summed vertically to obtain the market demand curve.

A) True
B) False

Correct Answer

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A decrease in the price of sugar will shift the supply curve for cookies to the right.

A) True
B) False

Correct Answer

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The law of demand is true for most goods in the economy.

A) True
B) False

Correct Answer

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A decrease in demand shifts the demand curve to the left.

A) True
B) False

Correct Answer

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Individual supply curves are summed vertically to obtain the market supply curve.

A) True
B) False

Correct Answer

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Price will rise to eliminate a shortage.

A) True
B) False

Correct Answer

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The law of supply states that,other things equal,when the price of a good falls,the quantity supplied falls as well.

A) True
B) False

Correct Answer

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If there is an improvement in the technology used to produce a good,then the supply curve for that good will shift to the left.

A) True
B) False

Correct Answer

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Price cannot fall so low that some sellers choose to supply a quantity of zero.

A) True
B) False

Correct Answer

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It is not possible for demand and supply to shift at the same time.

A) True
B) False

Correct Answer

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The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

A) True
B) False

Correct Answer

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Baseballs and baseball bats are substitute goods.

A) True
B) False

Correct Answer

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Most markets in the economy are highly competitive.

A) True
B) False

Correct Answer

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An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

A) True
B) False

Correct Answer

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When quantity demanded exceeds quantity supplied at the current market price,the market has a shortage,and market price will likely rise in the future to eliminate the shortage.

A) True
B) False

Correct Answer

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If a determinant of demand other than price changes,the demand curve shifts.

A) True
B) False

Correct Answer

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