3. More of a commodity will be purchased at lower prices because A . consumers substitute this commodity for others whose price has not changed. B . at lower prices,consumers can buy more of this commodity with a given money income. C . more consumers will buy the commodity at lower prices than at higher prices. D . all of the above 4. A change price of a commodity A. affects the consumer's ability to buy the good. B. affects the consumer's willingness to buy the good. C . changes the tastes of consumers. D . all of the above. 5. Which one of the following is not held constant in defining the demand schedule? A . income of a consumer C. prices of other goods B . prices of the good in question D. number of consumers 6. A movement along a demand curve can be caused by a change in A . income of a consumer C. expectation about future prices B . the price of other goods D. the price of the good in question 7. A movement along a supply curve can be caused by a change in A . the price of the good in question C. expectation about future income B . the price of related goods D. taste of a consumer 8. The intersection of a market demand curve and a market supply curve for a commodity determines A. the equilibrium price for the commodity. B. the equilibrium quantity for the commodity. C . the point of neither surplus nor shortage for the commodity. D . all of the above 9. Which of the following statements is not true when price is above the equilibrium price? A. The quantity supplied exceeds the quantity demanded of the commodity. B . There is a shortage of the commodity. C . The pressure on the commodity price is down ward. D . There is a surplus of the commodity 10. Excess demand for a commodity means that the consumers want to buy A . more than its supply C. equal to its supply B . less than its supply D. none of the above

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3. More of a commodity will be purchased at lower prices because A . consumers substitute this commodity for others whose price has not changed. B . at lower prices,consumers can buy more of this commodity with a given money income. C . more consumers will buy the commodity at lower prices than at higher prices. D . all of the above 4. A change price of a commodity A. affects the consumer's ability to buy the good. B. affects the consumer's willingness to buy the good. C . changes the tastes of consumers. D . all of the above. 5. Which one of the following is not held constant in defining the demand schedule? A . income of a consumer C. prices of other goods B . prices of the good in question D. number of consumers 6. A movement along a demand curve can be caused by a change in A . income of a consumer C. expectation about future prices B . the price of other goods D. the price of the good in question 7. A movement along a supply curve can be caused by a change in A . the price of the good in question C. expectation about future income B . the price of related goods D. taste of a consumer 8. The intersection of a market demand curve and a market supply curve for a commodity determines A. the equilibrium price for the commodity. B. the equilibrium quantity for the commodity. C . the point of neither surplus nor shortage for the commodity. D . all of the above 9. Which of the following statements is not true when price is above the equilibrium price? A. The quantity supplied exceeds the quantity demanded of the commodity. B . There is a shortage of the commodity. C . The pressure on the commodity price is down ward. D . There is a surplus of the commodity 10. Excess demand for a commodity means that the consumers want to buy A . more than its supply C. equal to its supply B . less than its supply D. none of the above

Answer 1

3. D 4. A and B 5. B 6. D 7. A 8. D 9. B 10. A.

Answer 2

3. The quantity demanded of a good or service depends on various factors, but price plays a special role. As the price of a commodity decreases, consumers can afford to purchase more of it with their income hence multiple will begin to buy it. Plus, consumers tend to substitute more expensive goods for cheaper ones when available. This comes down to a combination of preference and purchasing power, therefore, option D "All of the above" is accurate.4. The price of a commodity can directly impact a consumer's ability to purchase it as well as their desire or willingness to do so. However, a change in price does not directly influence the taste or preference of consumers. Therefore, option D "All of the above." is not accurate. The correct answer should be A “Affects the consumer's ability to buy the good." and B “Affects the consumer's willingness to buy the good." 5. The demand schedule is a table that shows the relationship between the price of a good and the quantity demanded. For a demand schedule to be stable, the other determinants of demand, such as income of a consumer, prices of other goods, and the number of consumers, must be held constant. However, the prices of the good in question should change, hence option B “Prices of the good in question.".6. A shift in the demand curve happens when the quantity demanded for a good or service at every price changes due to factors excepts its price. Whereas a movement along a demand curve only occurs when there is a change in the price of the good in question. Therefore, answer D “The price of the good in question."7. Similar to the demand curve, a shift in the supply curve is prompted by several factors excluding the price of the product. Meanwhile, a movement along the supply curve is due to a change in the price of the commodity. Hence, answer choice A “The price of the good in question."8. The intersection of the demand and supply curves represents equilibrium. At this point, the quantity demanded equals the quantity supplied - no surplus and no shortage. It also identifies the equilibrium price and equilibrium quantity. So, Option D "All the Above"9. If the price is above the equilibrium price, then traditionally there is a surplus, because more goods are supplied than demanded. The pressure on price will then typically be downward. There can't be a shortage in that scenario. Therefore, "There is a shortage of the commodity" is not a true statement.10. If there is an excess demand for a product, it means that people want to buy more of it than what producers have on offer. Hence, Option A "more than its supply."

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