Scribd
Upload
167 views2 pages

Activity 3: TRUE OR FALSE. Determine Whether The Following Statements Are TRUE (Write A) or FALSE (Write B) - Write Your Answers Is A Sheet of Paper

The document contains 25 true or false statements about market interactions, demand and supply curves, and price elasticity. The statements cover topics like the definition of a market, how price changes affect demand and supply, factors that can shift demand and supply curves, and concepts of price elasticity.

Uploaded by

Unnah Hiyas Pascual Mendoza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
167 views2 pages

Activity 3: TRUE OR FALSE. Determine Whether The Following Statements Are TRUE (Write A) or FALSE (Write B) - Write Your Answers Is A Sheet of Paper

The document contains 25 true or false statements about market interactions, demand and supply curves, and price elasticity. The statements cover topics like the definition of a market, how price changes affect demand and supply, factors that can shift demand and supply curves, and concepts of price elasticity.

Uploaded by

Unnah Hiyas Pascual Mendoza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Activity 3: TRUE OR FALSE.

Determine whether the following statements are TRUE (write


A) or FALSE (write B) . Write your answers is a sheet of paper

___A___ 1. A market is an interaction between buyers and sellers for trade or exchange. The
consumer sells and the seller buys.
___A___ 2. An increase in price tends to make consumer buy less and sellers to sell more. A
price decrease tends to cause the opposite reaction.
___A___ 3. The demand for a product is defined as the different quantities of a good that
buyers are willing to buy.
___A___ 4. The increase or decrease in the entire demand is shown through a shift of the
entire demand curve. This is referred to as a change in demand.
___A___ 5. The supply of a product is defined as the different quantities that sellers are willing
to sell.
___A___ 6. The supply curve is upward sloping from left to right. The demand curve is
downward sloping from left to right.
___A___ 7. An increase in income will shift the demand curve to the left on the graph. A
decrease in income will shift the demand curve to the right.
___B___ 8. An increase in population does not shift the demand curve, as it has no bearing on
the demand for any product. An increase in taste will shift demand curve to the right.
___B___ 9. A decrease in the cost of production will shift the supply curve to the left. An
increase in the cost of production will shift the supply curve to the right.
___B___ 10. Shifts in either the demand curve alone or the supply curve cannot cause a
change in the equilibrium point. It is only when both the demand curve and supply
curve shift that the equilibrium point is changed.
___B___ 11. The consumer’s income does not influence the demand for goods and services.
The increase in demand due to an increase in income is not experienced in the
economy.
___A___ 12. An increase in population results in a greater demand since there will be more
consumers as population increases.
___A___ 13. When the income of the consumer increases, it can shift the demand curve
upward to the right representing increase in demand.
___B___ 14. Increase in the cost of production will shift the supply curve downward to the
right.
___B___ 15. An increase in technology will reduce the supply of goods while an increase in cost
of production may increase.
______ 16.
______ 17. Price elasticity is an important decision-making tool to the seller because based on
the nature of the good, he can decide on how far to go with a price change.
______ 18. Demand may be described as elastic when a change in a determinant leads to a
proportionately greater change in the quantity of demand or supply.
______ 19. Normally, the coefficient of price elasticity has a positive sign because of the direct
relationship between price and demand.
______ 20. Income elasticity is the responsiveness of demand to the changes in income. It
expresses the percentage change in demand compared to a percentage change in
income.
______ 21. Demand is unitary elastic when a change in determinant leads to a proportionately
equal change in the quantity of demand or supply. In this case the coefficient of
elasticity equals to one.
______ 22. Elastic means the consumers are not responsive to the change in price.
______ 23. Demand being equal to supply is easy to achieve in reality.
______ 24. Higher demand for oil, aggravated by decrease in supply, made the price of
gasoline high
______ 25. Change in price will bring about change in quantity, which will also bring about
change in demand or supply.

You might also like