Question 1

The demand curve for a good is a line that relates

Accepted Answer

The demand curve shows the relationship between the price of a product and the quantity demanded by consumers at different price levels. It is a graphical representation of the law of demand, which states that as the price of a good increases, the quantity demanded by consumers decreases (ceteris paribus). Therefore, A) price and quantity demanded is the correct answer.

Question 2

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 the price of a good and the total quantity of that good that buyers in the market are willing and able to purchase at each price. It does not show how demand varies with changes in income, supply, or the price of substitute goods.

Question 3

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

A decrease in price usually leads to an increase in demand, so it is likely that students would purchase more than 750 cups per day. However, the exact number cannot be determined without further information.

Question 4

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

Accepted Answer

When summing individual demand curves, we are adding the quantity demanded by each individual for a certain price. Thus, this should be done horizontally to obtain the market demand curve.

Question 5

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 scenario describes the basic relationship between price and quantity demanded, which is the foundation of the law of demand. As the price of ice cream increases, the quantity demanded decreases, and as the price of chocolate sauce decreases, the quantity demanded increases.

Question 6

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

Accepted Answer

The line that relates the price of a good and the quantity demanded of that good is called the demand curve, and it usually slopes downward. This is because as the price of a good increases, the quantity demanded of that good decreases, and vice versa. This inverse relationship is known as the law of demand.

Question 7

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 8

The market demand curve

Accepted Answer

The market demand curve represents the total demand for a product in a market, which is the sum of all individual demand curves.

Question 9

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 is a graphical representation of the demand schedule, which lists the quantities demanded of a good at every price point. The market demand curve is derived by horizontally summing the individual demand curves of all buyers in the market.

Question 10

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

Accepted Answer

If something happens to alter the quantity demanded at any given price, such as a change in consumer preferences or income, then the entire demand curve shifts either to the left (decrease in demand) or to the right (increase in demand). This is different from a movement along the demand curve, which occurs when there is a change in the price of the good itself. The steepness or flatness of the demand curve is determined by the price elasticity of demand, which is a measure of how much the quantity demanded changes in response to a change in price.

Question 11

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

Accepted Answer

Total demand, market demand, and aggregate demand all refer to the sum of individual demand curves for a product. Equilibrium demand refers specifically to the quantity demanded at a market equilibrium price.

Question 12

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 is a table that shows the relationship between the price of a good and the quantity demanded of that good. A buyer schedule and a demand curve are not the correct terms for this type of table.

Question 13

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 amount of a product that consumers are willing and able to buy at each price point, taking into account the collective behavior of all individual buyers in the market.

Question 14

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

Accepted Answer

If quantity demanded decreases at every possible price, it means that consumers are willing to buy less of the product at all price points. This indicates a decrease in demand, which is represented by a shift of the demand curve to the left.

Question 15

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. This is because the market demand is the total quantity of a good that all buyers in a market are willing and able to buy at different prices during a given period of time. The market demand curve is derived by horizontally summing the individual demand curves of all buyers in the market.

Question 16

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

Accepted Answer

The demand curve can shift either to the right or to the left due to changes in factors such as consumer preferences, income, price of substitutes, complementary products, or changes in market conditions. The shift of the demand curve is referred to as a change in demand. Therefore, the answer is not A, C, or D.

Question 17

A demand schedule is a table that shows the relationship between

Accepted Answer

A demand schedule shows the relationship between the price of a good or service and the quantity that consumers are willing and able to purchase at different prices. It does not factor in quantity supplied or income.

Question 18

When we move along a given demand curve,

Accepted Answer

When we move along a given demand curve, only the price of the product changes while all other non-price determinants of demand like income, tastes and preferences, availability of substitute goods, and expectations of future prices remain constant. Therefore, option C is the correct answer.

Question 19

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 there is an increase in demand. This implies that the whole demand curve has shifted to the right.

Question 20

When drawing a demand curve,

Accepted Answer

Price is typically measured on the vertical axis and quantity demanded is measured on the horizontal axis when drawing a demand curve. This relationship shows how the quantity of a good or service demanded by consumers changes in response to a change in price.

Quiz 4: The Market Forces of Supply and Demand

The demand curve for a good is a line that relates

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

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?

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

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

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

The market demand curve

A market demand curve shows

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

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

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

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

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

The market demand curve

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

A demand schedule is a table that shows the relationship between

When we move along a given demand curve,

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

When drawing a demand curve,