ECON 1202 Lecture Notes - Lecture 5: Economic Equilibrium, Smartwatch, Technological Change

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Model uses a perfectly competitive market: assumptions. No barrier to new firms entering the market. Ex. market for wheat or agricultural products. Market demand- demand by all the consumers of a given good or service. Demand schedule- table that shows the relationship between the price of a product and the quantity of the product demanded. Demand curve- curve that shows the relationship between the price of a product and the quantity of the product demanded. When we draw a demand curve, we assume ceteris paribus: When analyzing the relationship between 2 variables- such as price and quantity demanded- other variables must be held constant. Quantity demanded- amount of good or service that a consumer is willing and able to purchase at a given price. Law of demand- price falls, quantity demanded increases; prices rises, quantity demanded decreases. Consumer substitute toward the newly less-expensive good.

Related Questions

Which of the following is the correct definition of demand schedule?

a. The quantity of a good or service that a consumer is willing to purchase at a given price.

b. A table showing the relationship between the price of a product and the quantity of the product demanded.

c. A curve that shows the relationship between the price of a product and the quantity of the product demanded.

maroonferret252

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

ECON 1202 Lecture Notes - Lecture 5: Economic Equilibrium, Smartwatch, Technological Change

ECON 1202 Full Course Notes

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