Question 1

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 2

A demand schedule is a table that shows the relationship between

Accepted Answer

A demand schedule is a table that shows the relationship between the price of a good or service and the quantity demanded by consumers. It does not show the relationship between quantity demanded and quantity supplied, income, or price and income.

Question 3

A market demand curve shows how the total quantity demanded of a good varies as

Accepted Answer

A market demand curve shows the relationship between price and quantity demanded, holding all other factors constant. Therefore, as the price of a good varies, the total quantity demanded will also vary. The other options (income, substitutes, and supply) may also affect demand, but are not directly reflected in a market demand curve.

Question 4

When we move along a given demand curve,

Accepted Answer

When we move along a given demand curve, we are only examining the relationship between price and quantity demanded. Therefore, all nonprice determinants of demand (such as income, tastes, and preferences) must be held constant in order to isolate the effect of changes in price on quantity demanded.

Question 5

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

Accepted Answer

A demand schedule lists the different prices for a good and the corresponding quantity demanded for that price. It shows the relationship between price and quantity demanded. A demand curve is a graphical representation of the demand schedule. A buyer schedule refers to the personal preferences and buying habits of an individual buyer, which may not necessarily represent the entire market's demand. Therefore, the best choice is (C) demand schedule.

Question 6

If the price of ice cream rose to $30 per gallon, consumers would purchase fewer gallons of ice cream than if the price were $4 per gallon. If the price of chocolate sauce fell to $0.50 per can, consumers would purchase more chocolate sauce than if the price were $5 per can. These relationships illustrate the

Accepted Answer

The relationships described in the question show the law of demand, which states that as the price of a good increases, the quantity demanded of that good will decrease, and as the price of a good decreases, the quantity demanded of that good will increase.

Question 7

The market demand curve

Accepted Answer

The market demand curve represents the sum of the quantities demanded by all the buyers at each price of the good. It is not found by vertically adding the individual demand curves and it does not slope upward. It represents the total quantity demanded by all buyers at each price level.

Question 8

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 coffee decreases, it is likely that students will be more willing to buy the coffee, resulting in an increase in demand. Therefore, it is most likely that students will purchase more than 750 cups per day.

Question 9

When drawing a demand curve,

Accepted Answer

When drawing a demand curve, price is measured along the vertical axis, and quantity demanded is measured along the horizontal axis. This is because the demand curve shows the relationship between the price of a good and the quantity of that good that consumers are willing and able to buy at that price. As the price of a good increases, consumers are generally willing to buy less of it, and vice versa.

Question 10

When quantity demanded decreases at every possible price, the demand curve has

Accepted Answer

When quantity demanded decreases at every possible price, it means that consumers are willing to buy less of the good. This results in a shift of the demand curve to the left, indicating a decrease in demand for the good.

Question 11

Once the demand curve for a product or service is drawn, it

Accepted Answer

Demand curve can shift either rightward or leftward due to changes in various factors such as price, income, taste, preferences, and availability of substitutes. Therefore, option B is the correct answer. The other options are incorrect as demand curve stability over time, becoming steeper over time, and moving along the curve are not accurate descriptions of the demand curve.

Question 12

When quantity demanded increases at every possible price, the demand curve has

Accepted Answer

When quantity demanded increases at every possible price, it means that consumers are willing to buy more of the good at each price level, which results in an increase in demand. This results in a shift of the demand curve to the right.

Question 13

Which of the following is not an expression for the sum of all the individual demand curves for a product?

Accepted Answer

Equilibrium demand refers to the quantity of a product that consumers are willing and able to buy at a particular price, which is the intersection point of the market demand and supply curves. It is not an expression for the sum of all the individual demand curves for a product. A, B, and D all refer to the total quantity of a product that consumers are willing and able to buy at different prices, incorporating the demand of all individual consumers in the market.

Question 14

To obtain the market demand curve for a product, sum the individual demand curves

Accepted Answer

To obtain the market demand curve for a product, we add up the individual demand curves horizontally since the quantity demanded for each price level is the sum of the quantity demanded by each individual at that price level. When adding up the individual demand curves vertically, we would be adding up the prices for each level of quantity, which is not what we want as we are interested in the total quantity demanded at each price level. Diagonally and averaging them are not viable options as they do not accurately represent the total demand for the product at each price point.

Question 15

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

Accepted Answer

Any change in quantity demanded due to factors such as income, price of substitutes or complements, or consumer preference will cause a shift in the demand curve, rather than a movement along it. The degree of shift may depend on the magnitude of the change and its impact on consumer behavior, but the shape of the curve remains the same. Therefore, choices A, B, and D are incorrect.

Question 16

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

Accepted Answer

The answer of Which of the following is not held...

Question 17

The demand curve for a good is a line that relates

Accepted Answer

The demand curve shows the relationship between the price of a good and the quantity of the good that consumers are willing and able to buy at that price. Therefore, the correct answer is A, price and quantity demanded.

Question 18

The sum of all the individual demand curves for a product is called

Accepted Answer

The sum of all the individual demand curves for a product is called market demand. This represents the total demand for the product in the market, taking into account the demands of all individual consumers.

Question 19

The market demand curve

Accepted Answer

The market demand curve reflects the total quantity demanded by all individuals in a market at each price, and is, therefore, the sum of all individual demand curves.

Question 20

A market demand curve shows

Accepted Answer

A market demand curve shows how much of a good all buyers are willing and able to buy at each possible price. It represents the aggregate demand for a good from all buyers in the market.

Quiz 4: The Market Forces of Supply and Demand

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

A demand schedule is a table that shows the relationship between

A market demand curve shows how the total quantity demanded of a good varies as

When we move along a given demand curve,

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

The market demand curve

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?

When drawing a demand curve,

When quantity demanded decreases at every possible price, the demand curve has

Once the demand curve for a product or service is drawn, it

When quantity demanded increases at every possible price, the demand curve has

Which of the following is not an expression for the sum of all the individual demand curves for a product?

To obtain the market demand curve for a product, sum the individual demand curves

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?

The demand curve for a good is a line that relates

The sum of all the individual demand curves for a product is called

The market demand curve

A market demand curve shows