ECON 001B Chapter Notes - Chapter 4: Peanut Butter, Moe Williams, Demand Curve

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pucemallard867

12 May 2020

School

Pasadena City College

Department

Economy

Course

ECON 001B

Professor

Kim

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Document Summary

Markets: a group of buyers and sellers of a particular good or service. Competitive markets: where no buyer or seller can affect the price. The good or service is identical across sellers and 2. Demand: the quantity demanded for a good or service is the amount of a good that people are willing and able to purchase. Law of demand: the claim (always exceptions in economics*) that, other things being equal, the quantity demanded of a good falls when the price of the good rises. Demand schedule: table showing relationship between price and quantity demanded. Demand curve: a graph showing the above^ Alice and bob"s demand for ice cream. Alice: free ice cream = 24 units, =16 units, = 8, = 0. Price is on vertical axis and demand is on horizontal axis and always label. Imagine a graph of the above table*

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

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

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 001B Chapter Notes - Chapter 4: Peanut Butter, Moe Williams, Demand Curve

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