UNIT II EXAM Review Game 1. This market structure has few artificial barriers: monopolistic competition 2.

. The quantity demanded of Product A increased. What could explain this? The price of Product A decreased 3. Product A & Product B are substitutes. What affect would a decrease in the price of Product A have on the demand curve for Product B? It would shift it to the left 4. How are prices determined in a purely free market economy? Supply & demand 5. Sellers in this market structure offer identical products: perfect competition 6. In which market structure would the Alphabet Corporation have total control over the price of Product A? Monopoly 7. What is it called when consumers buy less of Product A than producers offer for sale? surplus 8. The price of a complement of Product A decreases will lead to an increase in demand 9. Product A is a unique product produced solely by the Alphabet Corporation and has no close substitutes is a monopoly 10. What is a maximum price that can be charged? Price ceiling 11. What is a lowest price that can be paid? Price floor 12. A price ceiling causes EXCESS _____? Demand 13. Which market structure has a large number of firms that sell similar but slightly different products? Monopolistic competition 14. Which market structure has the least number of firms competing? Monopoly 15. The price of Product A decreases: decrease in quantity supplied 16. The Alphabet Corporation, Letters r Us, and THE ABC COMPANY account for 75% of output in the market for Product A is an example of an oligopoly 17. Because there are so many sellers of Product A, no one producer can influence the market price: perfect competition 18. The price of a substitute of Product A increases: increase in demand 19. The price of an input of Product A increases: decrease in supply 20. The most difficult for new firms to enter is a monopoly 21. The number of suppliers of Product A decreases. decrease in supply 22. Each firm is large enough to influence market price: oligopoly 23. A popular athlete does a commercial for Product A and sales increase: increase in demand 24. There are no barriers to entry in the market for Product A is perfect competition 25. The price of Product A decreases: increase in quantity demanded 26. The Alphabet Corporation starts a price war with Letters r Us in order to get a larger share of the market for Product A: oligopoly 27. Technology for creating Product A improves will increase supply

28. Demand for Product A is highly elastic. The Alphabet Corporation lowered the price of Product A and found that total revenues increased: increase in quantity demanded 29. The price of an input of Product A decreases will increase supply