Question 1

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 known as the market demand curve, as it represents the total demand for the product in the market.

Question 2

The market demand curve

Accepted Answer

The market demand curve represents the total demand for a product or service by all consumers in a market. It is derived from the individual demand curves of all the consumers in the market, which are summed up horizontally to obtain the market demand curve. Therefore, Option A is the correct answer. Option B is incorrect because the market demand curve only represents the demand for a specific product or service in a market, not every product. Option C is incorrect because the market demand curve represents the total quantity demanded by all consumers at each price, not the average quantity demanded by individual demanders. Option D is incorrect because the market demand curve can be flatter or steeper than an individual demand curve, depending on the number of consumers and their individual demand curves.

Question 3

When drawing a demand curve,

Accepted Answer

Price is typically shown on the vertical axis of a demand curve, while quantity demanded is shown on the horizontal axis. This is because the quantity demanded varies based on the price of the goods, and as the price increases, the quantity demanded typically decreases. Therefore, the demand curve shows the relationship between price and quantity demanded.

Question 4

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 tastes or an increase in income, the entire demand curve will shift either to the right (increase in demand) or to the left (decrease in demand).

Question 5

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 and able to buy more of the product at any given price level. This leads to a shift in the demand curve to the right, indicating an increase in demand.

Question 6

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 demanded of that good, holding all other factors constant. Therefore, as the price of the good varies, the quantity demanded will also vary, resulting in a downward sloping demand curve. Changes in income, price of substitutes, and supply can all shift the demand curve but do not directly impact the relationship between price and quantity demanded shown on the curve.

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 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 total quantity demanded by all buyers in the market at different prices.

Question 9

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 the consumers are less willing to buy the product. This could be due to various factors like change in consumer preferences, increase in price of substitute goods, decrease in income etc. The demand curve shifts to the left to represent this decrease in demand at every price level.

Question 10

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 table that shows the relationship between the price of a good and the quantity demanded of that good is called a demand schedule.

Question 11

When we move along a given demand curve,

Accepted Answer

When we move along a given demand curve, we are only looking at the effect of changes in price on quantity demanded while holding all other nonprice determinants of demand constant. Therefore, only choice C is correct.

Question 12

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 are all expressions for the sum of all individual demand curves for a product. Equilibrium demand, on the other hand, refers to the quantity of a product that is demanded at a specific price where the quantity demanded equals the quantity supplied.

Question 13

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 decreases, it is likely that demand will increase, as more students will be able to afford the coffee. Therefore, it is likely that students will purchase more than 750 cups per day. However, we cannot be certain of this outcome without more information.

Question 14

A demand schedule is a table that shows the relationship between

Accepted Answer

A demand schedule shows the relationship between price and quantity demanded, so the correct answer is C. Option A is incorrect because it refers to quantity supplied and is not the intended purpose of a demand schedule. Option B is also incorrect because it only shows the relationship between income and quantity demanded, which is not the focus of a demand schedule. Option D is incorrect because it references income, which is not a variable included in a demand schedule.

Question 15

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 given relationships illustrate the law of demand, which states that as the price of a good or service increases, the quantity demanded decreases, and as the price decreases, the quantity demanded increases.

Question 16

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 that good that consumers are willing and able to buy at each price. It is not related to income or quantity supplied. Therefore, option A is the correct choice.

Question 17

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, so option D is the correct answer. Option A is incorrect because vertical addition of the individual demand curves does not lead to the market demand curve. Option B is incorrect because the market demand curve may slope upward or downward depending on the nature of the good. Option C is incorrect because the market demand curve represents the quantity demanded at each price, not the sum of the prices buyers are willing to pay.

Question 18

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 19

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

Accepted Answer

The answer of To obtain the market demand curve for...

Question 20

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 that affect demand, such as changes in consumer preferences, income levels, prices of related goods or services, and advertising or marketing efforts. Therefore, the curve is not necessarily stable over time and can change its position.

Quiz 4: The Market Forces of Supply and Demand

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

The market demand curve

When drawing a demand curve,

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

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

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

A market demand curve shows

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

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

When we move along a given demand curve,

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

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 demand curve for a good is a line that relates

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

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