ECN 212 Questions with 100% Correct
Answers
Define: Market
Group of buyers and sellers of a particular good or service
Define: Demand (Individual and Market)
As the price of a good or service goes up the quantity demanded for that good or service goes
down (vice versa, down/up)
The demand curve is a function that shows...?
quantity demanded at different prices
The demand schedule is table that shows the...?
quantity demanded at each price
a decrease in the price of a good will
increase quantity demanded
A movement upward and ato the let along a demand curve is called a(n)
decrease in quantity demanded
A movement downward and to the right along a demand curve is called a(n)
increase in quantity demanded
"Other things equal, when the price of a good rises, the quantity demanded of the good
falls, and when the price falls, the quantity demanded rises." This relationship between
price and quantity demanded
is referred to as the law of demand
, The market demand curve represents...?
the sum of the quantites demanded by all the buyers at each price of the good
Dan buys more donuts at $0.50 per donut than at $1.50 per donut, other things equal. Is
an example of...
the law of demand
What is not held constant in a demand schedule?
price
When the price of a good or service changes
there is a movement along a given demand curve
An increase in the price of a good will
decrease quantity demanded
The quantity demanded of a good is the amount that buyers are
willing and able to purchase
When quantity demanded decreases at every possible price, the demand curve has
shifted to the left
Which of the following changes would not shift the demand curve for a good or service?
a change in the price of a good or service
Normal good is a good for which demand...?
increases when income increases
Inferior good is a good for which demand...?
Answers
Define: Market
Group of buyers and sellers of a particular good or service
Define: Demand (Individual and Market)
As the price of a good or service goes up the quantity demanded for that good or service goes
down (vice versa, down/up)
The demand curve is a function that shows...?
quantity demanded at different prices
The demand schedule is table that shows the...?
quantity demanded at each price
a decrease in the price of a good will
increase quantity demanded
A movement upward and ato the let along a demand curve is called a(n)
decrease in quantity demanded
A movement downward and to the right along a demand curve is called a(n)
increase in quantity demanded
"Other things equal, when the price of a good rises, the quantity demanded of the good
falls, and when the price falls, the quantity demanded rises." This relationship between
price and quantity demanded
is referred to as the law of demand
, The market demand curve represents...?
the sum of the quantites demanded by all the buyers at each price of the good
Dan buys more donuts at $0.50 per donut than at $1.50 per donut, other things equal. Is
an example of...
the law of demand
What is not held constant in a demand schedule?
price
When the price of a good or service changes
there is a movement along a given demand curve
An increase in the price of a good will
decrease quantity demanded
The quantity demanded of a good is the amount that buyers are
willing and able to purchase
When quantity demanded decreases at every possible price, the demand curve has
shifted to the left
Which of the following changes would not shift the demand curve for a good or service?
a change in the price of a good or service
Normal good is a good for which demand...?
increases when income increases
Inferior good is a good for which demand...?