It's the Law LAP Quiz

1. What creates demand for goods and services?

• 1. Ability and desire of consumers to buy goods and services

• 1. Price at which consumers will buy goods and services

• 1. Number of competitors selling the goods and services

• 1. Total amount of goods or services available for sale

1. In economics, supply refers to the quantity of a good or service that sellers

• 1. are willing to buy in a certain time period.

• 1. are willing to sell at a specified price.

• 1. need to operate a business.

• 1. keep in stock for future sale.

1. When demand is greater than supply, higher prices can be charged because consumers are willing to pay more to obtain the product. This is known as

• 1. product utility.

• 1. discretionary income.

• 1. a seller's market.

• 1. a buyer's market.

1. As prices decrease, consumer demand usually

• 1. decreases.

• 1. stabilizes.

• 1. stays the same.

• 1. increases.

1. Producers are willing to manufacture more of a product when

• 1. production costs are increased.

• 1. demand for the product is decreased.

• 1. its selling price is decreased.

• 1. its selling price is increased.

1. Which of the following has inelastic demand:

• 1. TVs

• 1. Movie tickets

• 1. Ice cream

• 1. Bread

1. Demand is likely to be most elastic for which of the following:

• 1. Concert tickets

• 1. Footwear

• 1. Cereal

• 1. Oranges

1. Which of the following would affect demand for a consumer magazine:

• 1. The number of inserts in the magazine

• 1. The usefulness of the magazine

• 1. The magazine's delivered circulation

• 1. The cost of advertising in the magazine

1. Which of the following factors affects consumers' decisions to buy goods or services:

• 1. Buying power

• 1. Competition

• 1. Labor costs

• 1. Production costs

1. What is the primary factor that determines supply?

• 1. Product utility

• 1. Consumer income

• 1. Cost of production

• 1. Product characteristics