Question 1

When we move along a given demand curve,

Accepted Answer

When we move along a given demand curve, all nonprice determinants of demand (such as consumer preferences, income, prices of related goods, etc.) are held constant. The movement along the curve is solely due to changes in the price of the good itself.

Question 2

Table 4-2
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  ​
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-Refer to Table 4-2. If these are the only four buyers in the market, then when the price decreases from $2.00 to $1.50, the market quantity demanded

Accepted Answer

When the price decreases from $2.00 to $1.50, each buyer increases their quantity demanded. If the total increase in quantity demanded by all buyers is 10 units, then the market quantity demanded increases by 10 units.

Question 3

If something happens to alter the quantity demanded at any given price, then

Accepted Answer

When the quantity demanded changes at any given price, it indicates a change in demand, not just a change in the quantity demanded. This is represented by a shift in the demand curve, either to the left or to the right, depending on whether demand decreases or increases, respectively. Changes in factors like consumer preferences, income, prices of related goods, or expectations about future prices can cause such shifts. Moving along the demand curve would imply a change in the quantity demanded due to a change in price, not a change in demand itself.

Question 4

Which of the following is not held constant in a demand schedule?

Accepted Answer

A demand schedule typically holds factors such as income, tastes, and expectations constant to isolate the effect of price changes on the quantity demanded. The price is the variable that changes in a demand schedule to show how it affects the quantity demanded.

Question 5

Which of the following demonstrates the law of demand?

Accepted Answer

The law of demand states that, all else being equal, as the price of a good decreases, the quantity demanded increases. Ashlyn buying more donut holes at a lower price demonstrates this principle.

Question 6

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. If the price decreases to $3.75 per cup, which of the following is the most likely outcome?

Accepted Answer

When the price of a good decreases, the quantity demanded typically increases, assuming other factors remain constant. Therefore, if the price of the gourmet coffee decreases, it is likely that students would purchase more than 750 cups per day.

Question 7

A demand schedule is a table that shows the relationship between

Accepted Answer

A demand schedule specifically shows the relationship between the price of a good or service and the quantity of that good or service that consumers are willing and able to purchase at various prices, hence option C is correct.

Question 8

The market demand curve

Accepted Answer

The market demand curve represents the total quantity demanded by all consumers in the market for a good or service at various prices. It is derived by horizontally (not vertically) summing the individual demand curves of all consumers, showing how the total quantity demanded changes with price.

Question 9

Figure 4-1  ​
-Refer to Figure 4-1. The movement from point A to point B on the graph is caused by

Accepted Answer

The movement from point A to point B on a demand curve typically represents an increase in quantity demanded due to a decrease in price, assuming all other factors remain constant.

Question 10

Figure 4-2
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Consumer 1
Consumer 2   ​
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-Refer to Figure 4-2. If these are the only two consumers in the market, then the market quantity demanded at a price of $6 is

Accepted Answer

The market quantity demanded is the sum of the quantities demanded by each consumer. At a price of $6, consumer 1 demands 11 units and consumer 2 demands 8 units. Therefore, the market quantity demanded is 11 + 8 = 19 units.

Question 11

A monopoly is a market with one

Accepted Answer

In a monopoly, there is only one seller in the market, and this seller has the power to set the price of the goods or services because there are no close substitutes, giving the seller significant market power.

Question 12

Table 4-1 $$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Price } \ \text { (Dollarsper unit) } \end{array} & \begin{array} { c } \text { Quantity Demanded } \ \text { (Units) } \end{array} \ \hline 16 & 80 \ \hline 21 & Q _ { 1 } \ \hline \end{array}$$ -Refer to Table 4-1. If the law of demand applies to this good, then Q₁ could be

Accepted Answer

The law of demand states that there is an inverse relationship between price and quantity demanded. Since the price increases from $16 to $21, the quantity demanded should decrease, making 70 a possible lower quantity demanded than 80.

Question 13

Figure 4-1  ​
-Refer to Figure 4-1. The movement from point A to point B on the graph shows

Accepted Answer

The movement from point A to point B on a demand curve represents an increase in quantity demanded, typically due to a decrease in price.

Question 14

The quantity demanded of a good is the amount that buyers are

Accepted Answer

The quantity demanded of a good refers to the amount that buyers are not only willing but also able to purchase at a given price, incorporating both desire and purchasing power.

Question 15

The line that relates the price of a good and the quantity demanded of that good is called the demand

Accepted Answer

The demand curve typically slopes downward, reflecting the inverse relationship between price and quantity demanded: as price decreases, quantity demanded usually increases, and vice versa.

Question 16

A decrease in the price of a good will

Accepted Answer

A decrease in the price of a good will not change the demand curve itself but will result in a movement along the demand curve, leading to an increase in the quantity demanded.

Question 17

Figure 4-1  ​
-Refer to Figure 4-1. It is apparent from the figure that the

Accepted Answer

The law of demand states that as the price of a good decreases, the quantity demanded increases, which is typically represented in a demand curve.

Question 18

The law of demand states that, other things equal, when the price of a good

Accepted Answer

The law of demand states that, all else being equal, as the price of a good falls, the quantity demanded of that good increases.

Question 19

Which of the following changes would not shift the demand curve for a good or service?

Accepted Answer

A change in the price of the good or service itself does not shift the demand curve; instead, it results in a movement along the demand curve. Changes in income, expectations about future prices, and the prices of related goods or services can shift the demand curve.

Question 20

Table 4-2
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  ​
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-Refer to Table 4-2. If these are the only four buyers in the market, then the market quantity demanded at a price of $1.50 is

Accepted Answer

The market quantity demanded is the sum of the quantities demanded by all buyers at a given price. If the table indicates that at $1.50 each buyer demands 6 units, then for four buyers, the total is 6 units x 4 buyers = 24 units.

Quiz 4: The Market Forces of Supply and Demand

When we move along a given demand curve,

Table 4-2 -Refer to Table 4-2. If these are the only four buyers in the market, then when the price decreases from $2.00 to $1.50, the market quantity demanded

If something happens to alter the quantity demanded at any given price, then

Which of the following is not held constant in a demand schedule?

Which of the following demonstrates the law of demand?

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. If the price decreases to $3.75 per cup, which of the following is the most likely outcome?

A demand schedule is a table that shows the relationship between

The market demand curve

Figure 4-1 -Refer to Figure 4-1. The movement from point A to point B on the graph is caused by

Figure 4-2 Consumer 1 Consumer 2 -Refer to Figure 4-2. If these are the only two consumers in the market, then the market quantity demanded at a price of $6 is

A monopoly is a market with one

Figure 4-1 -Refer to Figure 4-1. The movement from point A to point B on the graph shows

The quantity demanded of a good is the amount that buyers are

The line that relates the price of a good and the quantity demanded of that good is called the demand

A decrease in the price of a good will

Figure 4-1 -Refer to Figure 4-1. It is apparent from the figure that the

The law of demand states that, other things equal, when the price of a good

Which of the following changes would not shift the demand curve for a good or service?

Table 4-2 -Refer to Table 4-2. If these are the only four buyers in the market, then the market quantity demanded at a price of $1.50 is

Quiz 4: The Market Forces of Supply and Demand

When we move along a given demand curve,

Table 4-2 ​ ​ ​ ​ -Refer to Table 4-2. If these are the only four buyers in the market, then when the price decreases from $2.00 to $1.50, the market quantity demanded

If something happens to alter the quantity demanded at any given price, then

Which of the following is not held constant in a demand schedule?

Which of the following demonstrates the law of demand?

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. If the price decreases to $3.75 per cup, which of the following is the most likely outcome?

A demand schedule is a table that shows the relationship between

The market demand curve

Figure 4-1 ​ -Refer to Figure 4-1. The movement from point A to point B on the graph is caused by

Figure 4-2 ​ Consumer 1 Consumer 2 ​ ​ ​ -Refer to Figure 4-2. If these are the only two consumers in the market, then the market quantity demanded at a price of $6 is

A monopoly is a market with one

Figure 4-1 ​ -Refer to Figure 4-1. The movement from point A to point B on the graph shows

The quantity demanded of a good is the amount that buyers are

The line that relates the price of a good and the quantity demanded of that good is called the demand

A decrease in the price of a good will

Figure 4-1 ​ -Refer to Figure 4-1. It is apparent from the figure that the

The law of demand states that, other things equal, when the price of a good

Which of the following changes would not shift the demand curve for a good or service?

Table 4-2 ​ ​ ​ ​ -Refer to Table 4-2. If these are the only four buyers in the market, then the market quantity demanded at a price of $1.50 is

Table 4-2 -Refer to Table 4-2. If these are the only four buyers in the market, then when the price decreases from $2.00 to $1.50, the market quantity demanded

Figure 4-1 -Refer to Figure 4-1. The movement from point A to point B on the graph is caused by

Figure 4-2 Consumer 1 Consumer 2 -Refer to Figure 4-2. If these are the only two consumers in the market, then the market quantity demanded at a price of $6 is

Figure 4-1 -Refer to Figure 4-1. The movement from point A to point B on the graph shows

Figure 4-1 -Refer to Figure 4-1. It is apparent from the figure that the

Table 4-2 -Refer to Table 4-2. If these are the only four buyers in the market, then the market quantity demanded at a price of $1.50 is