The Market Demand for a Particular Good Indicates

question 11

Multiple Choice

The market demand for a particular good indicates:

• A) That consumers will purchase more of the good at higher prices,ceteris paribus.
• B) That sellers will offer more of the good only at higher prices,ceteris paribus.
• C) The total quantities buyers are willing and able to purchase at alternative prices,ceteris paribus.
• D) How much of the good is actually purchased in a given period of time.

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Definitions:

Free Entry

Free entry is a market condition where businesses can enter and exit the market without facing significant barriers or costs.

Competitive Price-Taker

A firm or individual in a market structure that has no control over the market price and must accept the prevailing market price for its product or service.

Output

The total amount of goods or services produced by a person, machine, company, or economy.

Price

The sum of money needed to buy a product or service.