Number of Competitors

1. The price of home computers rises. According to the law of supply, what will computer makers do?

a. make more computers

b. make fewer computers

c. stop making computers

d. make the same number of computers

2. What changes when you change an individual demand schedule into a market demand schedule for the same product?

a. quantity demanded

b. amount of the product being sold to each customer

c. the type of good or service being sold

d. the price of the product

3. What is an example of the income effect?

a. buying a new shirt instead of a new pair of shoes

b. paying more for a new computer

c. buying fewer pretzels because the price of pretzels increased

d. buying popcorn instead of pretzels because the price of pretzels increased

4. The government will approve a merger if it will

a. be beneficial by creating a monopoly.

b. lower costs and consumer prices or lead to a better product.

c. be good for certain consumers.

d. lower the number of competitors in the market.

5. Greta owns a grocery store. When decreasing prices force her to cut costs, one of the first things she does is

a. stop paying her property taxes.

b. cut her rent costs in half.

c. decrease hours for some workers.

d. stop selling perishable foods.