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EC120 Lecture Notes - Lecture 4: Demand Curve

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School
WLU
Department
Economics
Course
EC120
Professor
Logan Mc Leod

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EC120 Full Course Notes
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EC120 Full Course Notes
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Document Summary

Market: a group of buyer and sellers of a particular good or service. Competitive market: a market in which there are many buyer and many sellers so that each has a negligible impact on the market price. Buyers and sellers are numerous so no one can affect the market price each is a price taker . Quantity demanded: the amount of a good that buyers are willing and able to purchase. Law of demand: the claim that, other things equal, the quantity demanded of a good falls when the price of the good rises. Demand schedule: a table that shows the relationship between the price of a good and the quantity demanded. Demand curve: a graph of the relationship between the price of a good and the quantity demanded. Individual demand: the quantity demanded by a single buyer at each price. Market demand: the quantity demanded in the market.

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Related Questions

The amount of a good that buyers are willing and able to purchase at a given price:
 
(i) Law of Demand 
(ii) Demand Schedule
(iii) Quantity Demanded
(iv) Demand Curve

Any point along the market demand curve shows

1. the quantity of the good that firms would be willing and able to supply at a specific price

2. the relationship between the price of the good and total quantity demanded at a series of prices 

3. the opportunity cost of supplying a given quantity of goods to the market

4. the quantity of the good that consumers would be willing and able to purchase at a specific price

5. how population changes affect the quantity demanded at a specific price

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,

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.