QUESTION 1 You operate a hair and beauty salon near Knoxville, and you have lots of competition.

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QUESTION 1

You operate a hair and beauty salon near Knoxville, and you have lots of competition. Every one of your competitors offers slightly different services, and their prices vary a bit from store to store. What type of market do you operate in?

	A.	Monopoly
	B.	Monopolistic competition
	C.	Oligopoly
	D.	Perfect competition

QUESTION 2

You hold a patent for a special type of paint that may be used on aluminum auto bodies, so you are the only firm that may legally sell this product. What type of market do you operate in?

	A.	Oligopoly
	B.	Monopolistic competition
	C.	Monopoly
	D.	Perfect competition

QUESTION 3

You operate a pizza restaurant, and the price you pay for mozarella cheese increased last week by 10 percent. Does this change affect your supply curve for pizza or the demand curve of your customers?

	A.	Supply
	B.	Demand
	C.	Neither supply or demand

QUESTION 4

Suppose your state government cuts the state income tax rate. You own a retail clothing shop for women, and the clothes are a normal good for most of your customers. Which way does the demand curve for your clothes shift in response to the tax cut?