ECON-2110 Lecture 4: Chapter 3 - Demand
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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,
a. | all nonprice determinants of demand are held constant. | |||||||||||||
b. | only price is held constant. | |||||||||||||
c. | all determinants of quantity demanded are held constant. | |||||||||||||
d. income and price are held constant. When the price of a good or service changes,
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1. Assume the equilibrium price of product Z is $10. A decrease in the current price from $14 to $12 will cause an increase in the quantity:
A. Supplied, a decrease in the quantity demanded, and a decrease in the market surplus.
B. Supplied, a decrease in the quantity demanded, and a decrease in the market shortage.
C. Demanded, a decrease in the quantity supplied, and a decrease in the market surplus.
D. Demanded, a decrease in the quantity supplied, and the market shortage is eliminated.
E. Demanded, a decrease in the quantity supplied, and a decrease in the market shortage.
2. The Wall Street Journal (newspaper) of August 24, 2016, reported that the Chinese government recently increased the demand for wheat. When an economist says the demand for wheat has increased, she means that: | |||||||||||||||||
Ā |
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