Question

1. The law of demand predicts that

a. the more consumers purchase a good, the greater the demand for the good
b. consumers are willing to buy more of a good at a lower price than at a higher price
c. as prices go up, the quantity of a particular good that consumers will buy also rises
Od. consumers are willing to buy more of a good at a higher price than at a lower price
2. The function of price in a market system
a. is a way of adjusting the balance between the forces of supply and demand
b. acts as an incentive to producers to either increase or decrease the quantity supplied
c. is a means of rationing the available supply among those who demand it
d. all of these
3. A key advantage of the corporate form of business organization is
a. that the business lives on even if the owners of the business die
b. limited liability of stockholders
c.
the ability to raise significant amounts of financial capital
d.
all of these

Answer 1

1. The law of demand predicts that consumers are willing to buy more of a good at a lower price than at a higher price. Therefore, the correct answer is b.
2. The function of price in a market system is all of these: a way of adjusting the balance between the forces of supply and demand, an incentive to producers to either increase or decrease the quantity supplied, and a means of rationing the available supply among those who demand it. Therefore, the correct answer is d.
3. A key advantage of the corporate form of business organization is all of these: the business lives on even if the owners of the business die, limited liability of stockholders, and the ability to raise significant amounts of financial capital. Therefore, the correct answer is d.