Deck 6: Demand

Question 1

In a market there are two consumers.Each consumer has a demand curve of P = 10 - 0.5q.What is the market demand curve?

A)P = 10 - q
B)P = 10 - 0.25q
C)P = 20 - q
D)P = 10 - 2q
E)P = 20 - 0.5q

Answer 1

P = 10 - 0.25q

Question 2

A demand curve is:

A)The amount of a product or service that a consumer desires.
B)The quantity of a good or service that a consumer thinks about buying.
C)The quantity of a consumer would like to buy, if they had the money.
D)The amount of a good that a consumer is willing and able to purchase at different prices of the good.
E)None of the above.

Answer 2

The amount of a good that a consumer is willing and able to purchase at different prices of the good.

Question 3

A consumer's marginal benefit curve (MB) for a good is represented by MB = 100 - 2q.What is the individual's MB of the 50th unit of the good consumed?

A)100
B)80
C)40
D)20
E)0

Answer 3

0

Question 4

In a market there are two consumers.The first has a demand curve of P = 20 - 2q.The other has a demand curve of P = 20 - q.What is the market demand curve?

A)P = 30 - q
B)P = 40 - 3/2q
C)P = 20 - 3q
D)P = 20 - 2/3q
E)None of the above.

Question 5

If a consumer's income increases:

A)There will be a change in demand.
B)There will be a movement along the demand curve.
C)There will be an increase in the quantity demanded, but the demand curve will not shift.
D)b and c
E)None of the above.

Question 6

A demand curve is derived:

A)Holding everything else constant, except for the price of the good itself.
B)Holding everything else constant, except for the consumer's income and the price of the good.
C)Allowing everything relevant to vary, but only by a small amount.
D)Holding everything constant, except for the price of the good itself and the price of related products.
E)None of the above

Question 7

The marginal benefit curve is:

A)An individual's demand curve for the product.
B)An individual's demand curve, that is derived varying income.
C)Typically flat, indicating a constant benefit derived from consuming the good.
D)b and c
E)None of the above.

Question 8

Which statement is true?

A)The law of demand typically holds because an individual consumer's demand curve is derived holding income constant.
B)The law of demand always holds in every market.
C)The law of demand suggests an inverse relationship between price and the quantity demanded.
D)The law of demand suggests that the demand curve for an individual is upward sloping, due to diminishing MB.
E)None of the above.

Question 9

A market demand curve is the:

A)Horizontal summation of individual demand curves.
B)Summation of the quantities each individual in the market is willing and able to purchase, for every price.
C)The summation of individual demand curves, allowing income to vary.
D)a and b
E)a and C

Question 10

A consumer's marginal benefit curve (MB) for a good is represented by MB = 100 - 2q.What is the highest price the individual is willing to pay for the 10th unit of the good?

A)0
B)100
C)80
D)40
E)60