ECON 1000 Lecture Notes - Lecture 3: Aggregate Supply, Marginal Utility, Normal Good

10 views6 pages

byzantiumswan124

8 Dec 2015

School

Department

Course

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

castroariane563 and 39059 others unlocked

ECON 1000 Full Course Notes

Verified Note

10 documents

Document Summary

Recall allocative efficiency is the production of goods using the least (cid:1) amount of resources. There is a range of prices for which one will pay for good x. On this curve, we want to see what happens to q when we change p. Inverse relationship between the price and quantity demanded: when we look at the demand curve, we assume all other goods prices remain constant. Demand curves differ from person to person, since the utility of the quantity demanded good differs as well. Law of demand: the higher the price the less it is demanded, the lower the price the higher the demand. Income effect means that, because of a price fall, you"re left with more money in your pocket (has nothing to do with income itself directly) This doesn"t prove the law of demand, this only supports it. Don"t confuse with substitute good, like chicken and beef, so you can fairly easily substitute one for the other.

Related Questions

Which of the following statements is false about the demand curve?

A)When demand decreases, there is a drop in the quantity demanded at each price.

B)When only the price of a good changes, there is movement along the demand curve but no change in demand.

C) A change in demand is graphically shown by shifting the entire demand curve.

D) An increase in demand shifts the demand curve to the left, closer to the price axis.

crimsonreindeer712

Which of the following statements is FALSE about the demand curve?

A) An increase in demand shifts the demand curve to the left, closer to the price axis.

B) When demand decreases, there is a drop in the quantity demanded at each price.

C) When only the price of a good changes, there is movement along the demand curve but no change in demand.

D) A change in demand is graphically shown by shifting the entire demand curve.

jadebat389

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.

ECON 1000 Lecture Notes - Lecture 3: Aggregate Supply, Marginal Utility, Normal Good

ECON 1000 Full Course Notes

Document Summary

Get access

Related Documents

ECON 1000 Lecture Notes - Lecture 3: Demand Curve, Marginal Cost, Economic Equilibrium

ECON 1000 Lecture Notes - Lecture 3: Demand Curve, Latte, Marginal Cost

ECON 1000 Chapter Notes - Chapter 3: Cowhide, Economic Equilibrium, Natural Disaster

Related Questions