ECON 2101 - Ch 3,4,6
(questions and answers)
define demand curve - answer a function that shows the quantity demanded
at different prices (quantity vs price graph)
define quantity demanded - answer the quantity that buyers are willing to
buy at a particular price
how to read a demand curve
1. horizontally
2. vertically - answer 1. tells the price demanders are willing and able to buy
2. tells the MAX price demanders are willing to pay
why does oil have a negative slope for its DEMAND CURVE? - answer 1. Oil is
not equally valuable in all uses
2. more valuable in jet fuel than rubber ducks
3. at higher prices oil is only purchased for jet fuel
define law of demand - answer the lower the price, the greater the quantity
demanded
define consumer surplus - answer the consumer's gain from exchange or the
difference between the max price a consumer is willing to pay for a certain
quantity and the market price (ex. getting a sale)
define total consumer surplus - answer quantity measured by the shaded
area beneath the demand curve and above the price
, 1. An _______ in demand shifts the demand curve _______, _________ to the
_________.
2. An _______ in demand shifts the demand curve _______, _________ to the
_________.
3. Increase in income __________ or _________ demand for a __________.
4. The expectation of a ________ in the future _______ of a good _________
demand for it TODAY.
5. what are tastes based on?
6. If the quantity traded is less than equilibrium quantity: - answer 1.
increase; outward; up; right
2. decrease; inward; down; left
3. increases; decreases; good
4. reduction; supply; increases
5. how public option vs with time
6. Some gains from trade will be lost
list the important demand shifters (6) - answer 1. income
2. population
3. price of substitutes
(questions and answers)
define demand curve - answer a function that shows the quantity demanded
at different prices (quantity vs price graph)
define quantity demanded - answer the quantity that buyers are willing to
buy at a particular price
how to read a demand curve
1. horizontally
2. vertically - answer 1. tells the price demanders are willing and able to buy
2. tells the MAX price demanders are willing to pay
why does oil have a negative slope for its DEMAND CURVE? - answer 1. Oil is
not equally valuable in all uses
2. more valuable in jet fuel than rubber ducks
3. at higher prices oil is only purchased for jet fuel
define law of demand - answer the lower the price, the greater the quantity
demanded
define consumer surplus - answer the consumer's gain from exchange or the
difference between the max price a consumer is willing to pay for a certain
quantity and the market price (ex. getting a sale)
define total consumer surplus - answer quantity measured by the shaded
area beneath the demand curve and above the price
, 1. An _______ in demand shifts the demand curve _______, _________ to the
_________.
2. An _______ in demand shifts the demand curve _______, _________ to the
_________.
3. Increase in income __________ or _________ demand for a __________.
4. The expectation of a ________ in the future _______ of a good _________
demand for it TODAY.
5. what are tastes based on?
6. If the quantity traded is less than equilibrium quantity: - answer 1.
increase; outward; up; right
2. decrease; inward; down; left
3. increases; decreases; good
4. reduction; supply; increases
5. how public option vs with time
6. Some gains from trade will be lost
list the important demand shifters (6) - answer 1. income
2. population
3. price of substitutes
