The mechanism that induces changes in buyer and seller behavior until the quantities demanded and supplied are equalMultiple choice question.occurs as buyers and sellers pursue their own interests.is directed by senior government economists.

A demand shift affectsMultiple Choicesellers' willingness to sell at various prices.buyers' willingness to purchase at various prices.sellers’ willingness to sell at the equilibrium price only.buyers’ willingness to purchase at the equilibrium price only.

The law of demand states that, other things equal,price and quantity demanded are inversely related.the larger the number of buyers in a market, the lower will be the product price.price and quantity demanded are directly related.consumers will buy more of a product at high prices than at low prices.Purposeful behavior suggests thatdecisions are generally not random or chaotic.people never put the well-being of others above their own.decisions are unaffected by emotion.people are never impulsive.Economics involves marginal analysis becausemost decisions involve changes from the present situation.marginal benefits always exceed marginal costs.marginal costs always exceed marginal benefits.much economic behavior is irrational.When producers do not produce the efficient amount of a product because they are unable to charge consumers what they need to do so, then there exists ademand-side market failure.supply-side market failure.competitive market.monopolistic market.If economic theories are solidly based on relevant facts, then appropriate economic policy becomes obvious and uncontroversial.truefalseDemand-side market failures occur whendemand curves underreport how much consumers are willing to pay for a good or service.demand curves don't reflect the full cost of producing a good or service.government imposes a tax on a good or service.a good or service is not produced because no one wants it.

35.In perfect competition how the prices of goods and services are decided?  A. Demand and supply forces decide the prices of goods and services.  B. The seller decides the prices of goods.  C. Government influences the prices of goods.  D. Buyers control the price level by influencing demand for the products.

If price is above the equilibrium level, competition among sellers to reduce the resulting:Multiple Choicesurplus will decrease quantity demanded and increase quantity supplied.shortage will increase quantity demanded and decrease quantity supplied.shortage will decrease quantity demanded and increase quantity supplied.surplus will increase quantity demanded and decrease quantity supplied.

In a competitive market,a.only a few sellers sell the same product.b.if one buyer chooses to purchase a large quantity of the product, the price will rise.c.if one seller withholds his product from the market, prices will rise.d.each seller has limited control over the price of his product.