Question 1

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 specifically to the quantity of a product demanded at the market equilibrium price. It does not consider the aggregate demand at all possible prices, as the sum of individual demand curves, or market demand, does. Therefore, C is not an expression for the sum of all individual demand curves.

Question 2

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 individual demand curves and it does not necessarily slope upward. The market demand curve is derived by horizontally adding individual demand curves.

Question 3

The market demand curve

Accepted Answer

The market demand curve represents the total demand for a product or service in the entire market or industry. It is derived by adding up the individual demand curves of all consumers in the market. Therefore, option A is the correct answer.

Question 4

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 the coffee decreases, it is likely that more students will be willing to purchase it since it is now more affordable. Therefore, it is reasonable to assume that the number of cups purchased will increase.

Question 5

When we move along a given demand curve,

Accepted Answer

When moving along a demand curve, we are only considering changes in quantity demanded due to changes in price. Therefore, all other nonprice determinants of demand, such as income, preferences, and prices of other related goods, are held constant.

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 relationship between the price of a good and the quantity demanded is the essence of the law of demand. As the price of ice cream increases, consumers buy less of it, and as the price of chocolate sauce decreases, they buy more of it, which illustrates the law of demand. The other options, such as the law of supply, normal and inferior goods, and substitute and complement goods, do not apply to this scenario.

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

A demand schedule is a table that shows the relationship between

Accepted Answer

A demand schedule shows the relationship between price (on the x-axis) and quantity demanded (on the y-axis). It helps illustrate how changes in price affect the quantity of a good or service consumers are willing and able to purchase.

Question 9

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

Accepted Answer

A decrease in quantity demanded at every possible price indicates a decrease in demand, which results in a leftward shift of the demand curve.

Question 10

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

Accepted Answer

When the quantity demanded increases at every possible price, it means that consumers are willing to purchase more of the good or service at each price point. This indicates a shift in demand to the right, as the entire demand curve has shifted outward. This is because consumers' willingness to buy the good or service at any price has increased, resulting in a higher level of demand.

Question 11

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, which represents the total quantity of the product that all consumers in the market are willing and able to buy at different price levels.

Question 12

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

Accepted Answer

The demand curve can shift either rightward or leftward due to changes in factors such as consumer income, preferences, or the price of substitutes. Therefore, B is the correct choice as the demand curve is not always stable over time and can change its position.

Question 13

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. The curve represents the sum of all individual demand curves in the market. It is different from the other options given, which either describe the relationship between price and number of buyers or the relationship between quantity demanded and number of sellers, and do not take into account the willingness and ability of buyers to pay different prices for the same good.

Question 14

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 means that as the price of a good increases, the quantity demanded of that good by consumers decreases. This is known as the law of demand.

Question 15

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 shows the relationship between the price of a good and the quantity demanded of that good. It lists the various quantities demanded at different prices. A demand curve is a graphical representation of the demand schedule. A price-quantity schedule is not a commonly used term in economics. A buyer schedule is not a term used in economics.

Question 16

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

Accepted Answer

A market demand curve shows how the total quantity demanded of a good varies as the price of that good varies. It does not take into account variations in income, price of substitute goods, or supply.

Question 17

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, then the demand curve shifts. This means that at any given price, the quantity demanded will change, which will cause the entire demand curve to shift either to the left or to the right.

Question 18

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 19

When drawing a demand curve,

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. Therefore, the vertical axis represents price, and the horizontal axis represents the quantity demanded. Choice D correctly reflects this relationship.

Question 20

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 need to add up the quantity demanded at each price by all consumers in the market. This means we need to sum the individual demand curves horizontally, as it represents the total demand at each price level across all individual consumers.

Quiz 4: The Market Forces of Supply and Demand

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

The market demand curve

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 we move along a given demand curve,

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

A demand schedule is a table that shows the relationship between

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

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

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

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

A market demand curve shows

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

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

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

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

The demand curve for a good is a line that relates

When drawing a demand curve,

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