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Appendix AEconomics Fundamentals True / False Questions1.Most customers want more products than they can afford to buy.TrueFalse2.Economists usually assume that customers have a fairly definite set of preferences.TrueFalse3.The "law of diminishing demand" says that if a firm raised the price of its product, a smaller quantity would be demanded.TrueFalse4.If a firm lowered the price of its product, the "law of diminishing demand" says that the quantity demanded would decrease.TrueFalse5.A "demand schedule" for a television manufacturer would show how many new TVs are to be produced each month during the current production year.TrueFalse6.A demand schedule shows the relationship between price and quantity demanded in a market.TrueFalse7.A demand curve is a graph of the relationship between price and quantity in a market--assuming that all other things stay the same.TrueFalse8.Most demand curves are upward-sloping--to the right.TrueFalse9.If demand is elastic, then total revenue would decrease if price were lowered.TrueFalse10.If demand is elastic, then total revenue would decrease if price were raised.TrueFalse11.If demand is inelastic, then total revenue would increase if price were lowered.TrueFalse12.If demand is inelastic, then total revenue would increase if price were raise ...


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