Question 1

The market demand curve

Accepted Answer

The market demand curve represents the sum of all individual demand curves within a particular market and shows the total quantity demanded for a product at different prices.

Question 2

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 3

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 sum the individual demand curves horizontally because we are adding up the quantity demanded at each price level across all consumers. This gives us the total quantity demanded at each price, which we can then use to plot a market demand curve.

Question 4

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 less of the good is demanded overall. This indicates a decrease in demand and a shift to the left of the demand curve.

Question 5

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 demanded by consumers at the point where the market price and quantity supplied are in balance, and does not refer to the sum of individual demand curves. Total demand, market demand, and aggregate demand all refer to the sum of individual demand curves.

Question 6

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. While a demand curve also shows this relationship, a demand schedule is typically presented in the form of a table. The other options (A, B, and D) do not accurately describe this concept.

Question 7

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, all else being equal, it is likely that more students will purchase the cup of coffee. This is due to the fact that the lower price makes it more accessible to more people, increasing the quantity demanded.

Question 8

The demand curve for a good is a line that relates

Accepted Answer

The demand curve shows the relationship between price and quantity demanded of a good or service. As the price of a good increases, the quantity demanded decreases and vice versa, creating a downward-sloping curve.

Question 9

A demand schedule is a table that shows the relationship between

Accepted Answer

A demand schedule specifically shows the relationship between price and quantity demanded.

Question 10

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 it shows how much of the product is demanded in total by all consumers at any given price. The other options are not correct because A) vertically adding individual demand curves gives us a market demand schedule, not a curve; B) the market demand curve can slope either upward or downward depending on the product; and C) the market demand curve represents the total quantity demanded at each price, not the sum of the prices that all buyers are willing to pay.

Question 11

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. This means that at every price level, the quantity demanded will be different than before the shift.

Question 12

When we move along a given demand curve,

Accepted Answer

When we move along a given demand curve, we are changing the quantity demanded at different prices, while holding all the nonprice determinants of demand constant, such as income, tastes and preferences, prices of related goods, demographics, etc. Therefore, only option C is correct.

Question 13

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

This scenario illustrates the relationship between price and quantity demanded, which is the fundamental concept of the law of demand. As the price of ice cream increases, consumers purchase less of it, and as the price of chocolate sauce decreases, consumers purchase more of it, indicating a negative relationship between price and quantity demanded.

Question 14

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 is because it represents the total demand for a product in a particular market, taking into account the demand from all individuals or consumers in that market.

Question 15

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 various factors such as change in consumer preferences, change in prices of related goods, change in incomes of consumers, etc. This means that the quantity demanded at a given price changes, causing the demand curve to shift. The other options are incorrect as the demand curve is not necessarily stable over time, can move along the curve, and does not necessarily become steeper over time.

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

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 sum of individual demand curves of all buyers in the market. It provides information about the quantity demanded at different price points, which can help businesses and policymakers in making decisions related to pricing, production, and supply.

Question 18

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 buy more of the good at each price level. This results in an overall increase in demand and a shift of the demand curve to the right.

Question 19

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 the good varies. It does not directly show how income, the price of substitute goods, or supply affect the quantity demanded.

Question 20

When drawing a demand curve,

Accepted Answer

Price is typically measured along the vertical axis, while quantity demanded is measured along the horizontal axis. This is because demand curves typically show the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at that price. As the price of a good increases, consumers generally demand less of it, and vice versa. Therefore, the demand curve slopes downward from left to right, reflecting this inverse relationship between price and quantity demanded.

Quiz 4: The Market Forces of Supply and Demand

The market demand curve

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

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

When quantity demanded decreases 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?

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

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?

The demand curve for a good is a line that relates

A demand schedule is a table that shows the relationship between

The market demand curve

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

When we move along a given demand curve,

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

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

A market demand curve shows

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

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

When drawing a demand curve,