ECON 1B03 Lecture Notes - Lecture 1: Peanut Butter, Inferior Good, Ceteris Paribus

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ECON 1B03 Full Course Notes

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Market: a group of buyers and sellers of a particular good or service. The term supply and demand refer to the behaviour of people as they interact with one another in markets. Market demand refers to the sum of all individual demands for a particular good or service. Market supply refers to the sum of all individual supplies of a particular good or service. There are different types of market structures. Quantity demanded (qd): the amount of a good or service that consumers are willing and able to buy at a given price, p. When the price of a good increases, you buy less of that good. We say price and qd are negatively related. This phrase is latin and can be used to impress people. Other things being equal (ceteris paribus), when the price of a good rises, the quantity demanded of that good falls. Normal good: when income increases, demand increase and vice versa.

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

From an economic perspective which of the following are true of a market:

a. It is a virtual and/or physical institution or space.
b. The pursuit of buyers and sellers in making themselves better off.
c. Buyers and sellers interact in their desire to buy and sell a good or service.

amethystyellowjacket389

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.

ECON 1B03 Lecture Notes - Lecture 1: Peanut Butter, Inferior Good, Ceteris Paribus

ECON 1B03 Full Course Notes

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