Supply and Demand
The law of Demand states that as price increases, demnand.......
Decreases
Prices of goods and services are determined by......
A. Supply
B.Demand
C. Both
C. Both
supply of items used in a business
1
What is the best example of perfect competition in the United States....
Agriculture
The Law of Supply States that as price increases supply.........
increases
Name the term for where the price at which producers supply is equal to the amount consumers are willing to buy
Equilibrium Price
How many people own and operate the business in a partnership?
two or more
What is an asset?
All items to which a business holds legal claim
What is a monopoly?
industry dominated by 1 supplier
Where is the equilibrium point located at?
Where the supply and demand curve intersect
What is elasticity?
Measure of response to a price change
What is unlimited liability?
complete responsibility for all debts arising from a business
corporation
What is an oligopoly?
industry dominated only by a few suppliers
According to the substitution effect, if two items satisfy the same need and the price of one rises......
A. people will buy the higher priced item
B. people will buy the lower priced item
C. Demand will go up
B. people will buy the lower priced item
If there are lots of substitutes for an item, will the demand be elastic or inelastic?
Elastic
What is the most basic type of business organization is?
sole proprietorship
money or property
What is a merger?
When two companies combine after one buys more than half the stock of another
What is a price ceiling?
The amount of a good or service that consumers are willing to buy at various possible prices.
Which way does the demand curve slope?
Which way does the supply curve slope?
down, up
a joint venture is.....
temporary partnership
1 person
Name one characteristic of a monopoly
single seller
complete control
barriers to entry