1) A change in quantity supplied or demanded represents the movement from one point to another on a supply or demand curve.

Response options group

True

False

2) All the basic determinants of market demand are the tastes or preferences of consumers and the number of consumers.

Response options group

False

True

3) The higher the price of a good in relation to people's budget, the greater the elasticity of demand for that product.

Response options group

True

False

4) An increase in the price of water service does not significantly reduce the amount of consumption compared to an increase in the price of jewelry; this is due to the effect of luxury goods versus necessary goods.

Response options group

False

True

5) A shift in the supply or demand curve to another curve is a change in supply or demand.

Response options group

False

True

6) You can use the same formula for the price elasticity of demand to calculate the cross elasticity of demand, without any change in the equation.

Response options group

True

False

7) A cross elasticity of negative demand indicates that goods X and Y are substitute goods.

Response options group

True

False

8) Coffee, milk and bread are basic necessities for which they have a unitary demand.

Response options group

True

False

9) The shorter the period of time that the demand for a product is being considered, the more elastic it is because consumers are creatures of habit.

Response options group

True

False

10) Most alcoholic beverage products have a unit elasticity

Response options group

False

True