Question

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

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