Microeconomics Principles and Market Dynamics Quiz

Perfectly competitive markets have a large number of sellers and a small number of buyers.

The law of demand asserts an inverse relationship between price and quantity demanded.

Utility in economics refers to a good or service's capacity to fulfill human desires.

Opportunity cost represents the value of the best alternative foregone when a decision is made.

Monopolistic competition is characterized by numerous buyers and sellers offering differentiated products.

Market equilibrium occurs when the quantity demanded is equal to the quantity supplied.

Monopolistic competition features numerous buyers and sellers offering differentiated products.

A price floor is implemented to establish a minimum price, preventing it from dropping below that level.

Total revenue is determined by multiplying the price of a good by the quantity demanded.

The demand curve in a perfectly competitive market has a negative slope, indicating an inverse relationship between price and quantity demanded.

Price elasticity of demand quantifies the responsiveness of quantity demanded to price changes.

Firms in perfectly competitive markets lack the ability to influence the market price.

Public goods are characterized by non-excludability and rivalry in consumption.

Monopolies feature a single seller dominating the market with no close substitutes.

Elasticity in economics measures how one variable responds to changes in another variable.