ECO101H1 Chapter Notes - Chapter 3: Demand Curve, Economic Equilibrium, Normal Good

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ECO101H1 Full Course Notes

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Supply and demand: a model of a competitive market. A competitive market is a market in which there are many buyers and sellers of the same good or service. o. Key feature: no individual"s (buyer or seller) actions have a noticeable effect on the price at which the good or service is sold. When a market is competitive, the supply and demand model describes its behaviour. There are five key elements of this model: o o o. The set of factors that cause the demand curve to shift and set of factors that cause the supply curve to shift o o. The market equilibrium, includes the equilibrium price and equilibrium quantity. The way the market equilibrium changes when the supply curve or the demand curve shifts. A demand schedule is a table showing how much of a good or service consumers will want to buy at different prices.

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

What good or service do you buy on a regular basis? What factors are relevant to the demand and supply of the identified good or service? How do you imagine supply and demand, and therefore equilibrium price, might shift for that good or service 30 years in the future? Explain your answer, citing types of factors that would cause the supply and demand curve for the good or service to shift. Your response should be at least one paragraph long.

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.

ECO101H1 Chapter Notes - Chapter 3: Demand Curve, Economic Equilibrium, Normal Good

ECO101H1 Full Course Notes

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