ECON 1 Lecture Notes - Lecture 1: Demand Curve, Takers, Economic Equilibrium

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ECON 1 Full Course Notes

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A group of buyers and sellers of a particular good or service. Many buyers and many sellers, each has a negligible impact on market price. Buyers and sellers are so numerous that no one can affect the market price. Amount of a good that buyers are willing and able to purchase. When the price of a good rises, the quantity demanded of the good falls. When the price falls, the quantity demanded rises. Sum of all individual demands for a good or service. Market demand curve: sum the individual demand curves horizontally. To find the total quantity demanded at any price, we add the individual quantities. Shows how price affects quantity demanded, other things being equal. These "other things" are non-price determinants of demand. Things that determine buyers" demand for a good, other than the good"s price. Goods that have an increased demand when income increases (an increase in income leads to an increase in demand)

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

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.

Paraphrase each of the following statement and provide two illustrative examples.

1. The price falls when there is a surplus and rises when there is a shortage

Paraphrase

Example 1

Example 2

2. Not all markets equilibrate at the same speed.

Paraphrase

Example 1

Example 2

3. The maximum price that buyers are willing to pay for a good and the minimum price sellers are willing to accept for the good will help determine whether trade takes place between buyers and sellers.

Paraphrase

Example 1

Example 2

4. Equilibrium price and quantity are determined by supply and demand.

Paraphrase

Example 1

Example 2

ECON 1 Lecture Notes - Lecture 1: Demand Curve, Takers, Economic Equilibrium

ECON 1 Full Course Notes

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