ECON 1050 Chapter 3: Economics-1 (1) (dragged) 2

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salmoneagle674

17 Sep 2016

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Document Summary

A change in the quantity demanded vs. a change in demand. In the figure illustrated, the distinction between a change in demand and a change in the quantity demanded. When the price of the good changes and other things remain the same, the quantity demanded changes and there is a movement. If the price remains the same but one of the other influences on buyers" plans changes, demand changes and the demand curve shifts. If a firm supplies a good or service, then the firm: has the resources and the technology to produce it, can profit from producing it, and, has made a definite plan to produce and sell it. Resources and technology determine what it is possible to produce. Supply reflects a decision about which technological feasible items to produce. The quantity supplied of a good or service is the amount that producers plan to sell during a given time period at a particular price.

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.