Economics 1021A/B Lecture Notes - Lecture 6: Economic Surplus, Demand Curve, Marginal Utility

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Economics 1021A/B Lecture Notes - Lecture 5: Demand Curve, Marginal Utility, Inferior Good

Economics 1021A/B Lecture Notes - Lecture 6: Economic Surplus, Demand Curve, Marginal Utility

Economics 1021A/B Lecture Notes - Lecture 7: Price Elasticity Of Demand, Demand Curve

Document Summary

Value is what we get, price is what we pay. The value of one more unit of a good or service is its marginal benefit. We measure value as the maximum price that a person is willing to pay. A demand curve is a marginal benefit curve. The relationship between the price of a good and the quantity demanded by one person is called individual demand. The relationship between the price of a good and the quantity demanded by all buyers in the market is called market demand. Figure 5. 1 on the next slide shows the connection between individual demand and market demand. At a slice, the quantity demanded by lisa is 30 slices. Lisa and nick are the only buyers in the market for pizza. At a slice, the quantity demanded by nick is 10 slices. At a slice, the quantity demanded by lisa is 30 slices and by nick is 10 slices.

Related Questions

The market demand curve

a. slopes upward.

b. is found by vertically adding the individual demand curves.

c. represents the sum of the quantities demanded by all the buyers at each price of the good.

d. represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good.

When we move along a given demand curve,

all nonprice determinants of demand are held constant.

only price is held constant.

all determinants of quantity demanded are held constant.

d. income and price are held constant.

When the price of a good or service changes,

	a.	there is a movement along a given demand curve.
	b.	the demand curve shifts in the opposite direction.
	c.	the supply curve shifts in the opposite direction.
	d.	the demand curve shifts in the same direction.

B) difference between the market price and the maximum amount each individual is willing to pay for a good. C) sum of the prices that each individual is willing to pay for each quantity demanded. D) difference between the maximum amount each individual is willing to pay for a good and the market price. E) sum of the quantity demanded by each individual at each price. 1............... . 5) Market demand is the A) sum of the consumer surplus of each individual.

26. A graph called a demand curve can be used to illustrate the relationship between the price of compact disc players and the quantity of compact disc players demanded. If there is evidence that buyers' income and the price of cassette tape players also influence the demand for compact disc players, then a movement along the curve can be caused by a change in either the:
A) price of compact disc players or buyers' income.
B) price of cassette tape players or buyers' income.
C) quantity of compact disc players demanded or buyers income.
D) price of compact disc players or the quantity of compact disc players demanded.

27. A graph called a demand curve can be used to illustrate the relationship between the price of compact disc players and the quantity of compact disc players demanded. If there is evidence that buyers' income and the price of cassette tape players also influence the demand for compact disc players, then a shift in the curve can be caused by a change in either the:
A) price of compact disc players or buyers' income.
B) price of cassette tape players or buyers' income.
C) quantity of compact disc players demanded or buyers income.
D) price of compact disc players or the quantity of compact disc players demanded.

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Economics 1021A/B Lecture Notes - Lecture 6: Economic Surplus, Demand Curve, Marginal Utility

Economics 1021A/B Lecture Notes - Lecture 5: Demand Curve, Marginal Utility, Inferior Good

Economics 1021A/B Lecture Notes - Lecture 6: Economic Surplus, Demand Curve, Marginal Utility

Economics 1021A/B Lecture Notes - Lecture 7: Price Elasticity Of Demand, Demand Curve

Document Summary

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