Chapter 1 Demand, Supply, and Equilibrium Prices
A question of judgment
1. Economics believes that the price of a commodity is the only factor that affects its demand. ()
2. In economics, the demand for a commodity cannot generally be negative. ()
3. The law of demand is a reflection of a negatively sloped demand curve. ()
4. In economics, market supply refers to newly produced products, excluding products produced in the past but not yet sold. ()
5. The supply curve is the trajectory of the lowest price a firm is willing to accept for different quantities of a good. ()
6. Negative price elasticity of demand has no other economic significance except that demand and price operate in opposite directions.
7. |E d|→∞, which means that the demand curve is a straight line perpendicular to the abscissa. ()
8. The more elastic the demand, the smaller the slope of its demand curve. ()
9. Goods whose demand decreases as consumer income increases are low-end goods. ()
10. Generally speaking, products with a long production cycle have greater supply elasticity. ()
11. For any commodity, the long-run elasticity of demand is always greater than the short-run elasticity of demand. ()
12. The greater the elasticity of supply of goods, the smaller the proportion of tax increases that producers bear. ()
13. Economic demand for a product means that people want to have that product on the market. ()
14. There are more factors that affect changes in demand than changes in demand. ()
15. Under normal circumstances, Qs=a+bP can be used to represent the supply function of a product (a and b are both constants greater than 0). ()
16. Other things being equal, an increase in the price of a related product will lead to an increase in the supply of a product. ()
17. If the horizontal axis represents the demand Q, and the vertical axis represents the price P, then dP/dQ is the slope of the tangent at any point on the demand curve.
Rate. ()
18. If the demand curve is a straight line, the absolute value of the point elasticity of each point on the curve is equal. ()
19. If the price of a product falls by a certain amount (percentage), it will lead to the same amount (percentage) of sales of the product
increase, the revenue of the firm producing the product remains unchanged. ()
20. The cross-elasticity coefficient of demand must be negative, but its absolute value is generally taken in theoretical analysis. ()
21. The more substitutes there are for a product, the smaller the price elasticity of demand for that product. ()
22. When the price of a commodity falls, the demand for its complementary product will rise. ()
23. Generally speaking, products with high supply elasticity have low demand elasticity. ()