ECON 2100 Lecture Notes - Lecture 4: Normal Good, Economic Equilibrium, Demand Curve

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3 Mar 2017

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A competitive market is one with many buyers and sellers. Buyers and sellers so numerous that one can affect market price. Quantity demanded - the amount of the good that buyers are willing and able to. Law of demand - the claim that the quantity demanded of a good falls when the price of. Demand schedule - a table that shows the relationship between the price of a good and. Quantity demanded in the market is the sum of the quantities demanded by all the good rises (all other things equal) the quantity demanded buyers at each price. Change in the quantity demanded - movement along a fixed d curve occurs when p changes (ex. Change in demand - a shift in the d curve occurs when a nonprice determinant of demand changes (ex. income or number of buyers) If buyers increase, d will shift to the right. Demand for a normal good is positively related to income.

Related Questions

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.

26. A graph called a demand curve can be used to illustrate the relationship between the price of compact disc players and the quantity of compact disc players demanded. If there is evidence that buyers' income and the price of cassette tape players also influence the demand for compact disc players, then a movement along the curve can be caused by a change in either the:
A) price of compact disc players or buyers' income.
B) price of cassette tape players or buyers' income.
C) quantity of compact disc players demanded or buyers income.
D) price of compact disc players or the quantity of compact disc players demanded.

27. A graph called a demand curve can be used to illustrate the relationship between the price of compact disc players and the quantity of compact disc players demanded. If there is evidence that buyers' income and the price of cassette tape players also influence the demand for compact disc players, then a shift in the curve can be caused by a change in either the:
A) price of compact disc players or buyers' income.
B) price of cassette tape players or buyers' income.
C) quantity of compact disc players demanded or buyers income.
D) price of compact disc players or the quantity of compact disc players demanded.

tealfrog419

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

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ECON 2100 Lecture Notes - Lecture 4: Normal Good, Economic Equilibrium, Demand Curve

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