1.) The price elasticity of demand tells us
A. how sensitive buyers are to a change in price.
B.the movement along a supply curve when there is a change in demand.
C.how much more consumers will demand when incomes rise.
D. the extent to which demand increases as additional buyers enter the market.
E. none are correct
2.) If there is currently a surplus of a product in a market, the price of the product
A. is below the equilibrium level.
B. is in equilibrium.
C.will rise in the near future.
D. is above the equilibrium level.
3.) An increase in demand will cause
A. the demand curve to shift to the right, the price to increase, and the quantity to increase
B. the demand curve to shift to the left, the price to decrease, and the quantity to increase
C.the demand curve to shift to the left, the price to decrease, and the quantity to decrease
D. the demand curve to shift to the right, the price to increase, and the quantity to decrease