ECON 101 Chapter 3: Chapter 3 - Supply and Demand

326 views5 pages

azurewasp442

8 Aug 2017

School

Department

Course

Professor

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

sangriahare462 and 5 others unlocked

ECON 101 Full Course Notes

Verified Note

30 documents

Document Summary

Supply and demand: a model of a competitive market. Competitive market - market where there are many buyers and sellers of the same good or service, none of whom can influence the price @ which the good or service is sold. Supply and demand model- a model of how a competitive market behaves. Law of demand - when price falls consumers will buy more. The demand schedule and the demand curve. Demand schedule - table showing how much good/service consumers will want to buy at different prices. Quantity demanded - actual amount consumers are willing to buy at a price. Demand curve - graphical version of demand curve. Movement along demand curve = change in quantity demanded. Shift of curve = increase/decrease in demand. Normal goods- demand increases when consumer income rises. Inferior goods - demand decreases when consumer income rises. Quantity supplied - actual amt of good/service people are willing to sell at a specific price.

Related Questions

1. In a competitive market, the quantity of a product produced and the price of the product are determined by

a. buyers.

b. sellers.

c. both buyers and sellers.

d. None of the above is correct.

2. Which of the following statements is correct?

a. Buyers determine supply and sellers determine demand.

b. Buyers determine demand and sellers determine supply.

c. Buyers determine both demand and supply

d. Sellers determine both demand and supply

3. The demand for a good or service is determined by

a. those who buy the good or service

b. the government.

c. those who sell the good or service.

d. both those who buy and those who sell the good or service.

4. An increase in supply is represented by

a. a movement downward and to the left along a supply curve.

b. a movement upward and to the right along a supply curve.

c. a rightward shift of a supply curve.

d. a leftward shift of a supply curve

ceruleanseal203

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.

One reason that the quantity demanded of a good increases when its price falls is that the

A. lower price increases the real incomes of buyers, enabling them to buy more.
B. price decline shifts the supply curve to the left.
C. lower price shifts the demand curve to the left.
D. lower price shifts the demand curve to the right.

amberhamster945

ECON 101 Chapter 3: Chapter 3 - Supply and Demand

ECON 101 Full Course Notes

Document Summary

Get access

Related Documents

ECON 101 Study Guide - Midterm Guide: Final Good, Shortage, Normal Good

ECON 101 Chapter Notes - Chapter 3: Final Good, Market Clearing, Demand Curve

ECON 101 Chapter Notes - Chapter 3: Demand Curve, Inferior Good, Cream Cheese

Related Questions