ECON 20A Chapter Notes -Deadweight Loss, Economic Surplus, Demand Curve

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bronzeox822

13 Mar 2014

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Chapter 4 the market forces of supply and demand. Market: a group of buyer and sellers of a particular good or service. Competitive market: a market in which there are many buyers and many sellers so that each has a negligible impact on the market price. Market is group of buyer and sellers of a particular good or service. Quantity demanded: the amount of a good that buyers are willing and able to purchase. Law of demand: other thing equal, when the price of a good rises, the quantity demanded of the good falls; when the price falls, the quantity demanded rises. Demand curve: a graph of the relationship between the price of a good and the quantity demanded. Market demand: the sum of all the individual demands for a particular good or service. ( key factors for the shifting of demand curve) Taste (consumer): depends on consumer"s taste and preference for buying specific product.

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

A competitive market is one in which:

a. is only one seller, but many buyers.

b. are many sellers, and each has the ability to set the price of his product.

c. are many sellers and compete with one another in such a way that some sellers are always being forced out of the market.

d. are so many buyers and so many sellers that each has a negligible impact on the price of the product.

lilacferret935

The following table contains the demand schedule and supply schedule for a market for a particular good. Suppose sellers of the good successfully lobby Congress to impose a price ﬂoor $3 above the equilibrium price in this market.

Price	Quantity Demanded	Quantity Supplied
$0	15	0
$1	13	3
$2	11	6
$3	9	9
$4	7	12
$5	5	15
$6	3	18

Following the imposition of a price floor $3 above the equilibrium price, irate buyers convince Congress to repeal the price ﬂoor and to impose a price ceiling $1 below the former price ﬂoor. The resulting market price is

magentaarmadillo809

ECON 20A Chapter Notes -Deadweight Loss, Economic Surplus, Demand Curve

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