ECO100Y1 Lecture Notes - Lecture 3: Demand Curve, Substitute Good
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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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Below are the individual demand schedules of dark chocolate for Vanessa and Angela. Assuming they are the only people in the market for dark chocolate, draw each of their individual demand curves on the graph below, as well as the market demand curve, and answer the below multiple choice question.
Price of dark chocolate per pound | Pounds of dark chocolate demanded (Angela) | Pounds of dark chocolate demanded (Vanessa) |
$8 | 1 | 3 |
$1 | 3 | 5 |
After a while, Angela gets sick of eating the bitter chocolate and decides to cut back on dark chocolate and enjoy white chocolate more. What will happen as a result of Angela's decision? Select all of the correct answers.
A. Angela's individual demand curve for white chocolate shifts to the right
B. Angela's individual demand curve for dark chocolate shifts to the left
C. The market demand curve for chocolate shifts to the left
D. Vanessa's individual demand curve shifts to the right to compensate for Angela cutting back on dark chocolate