ECONOMICS ASSESMENT QUESTIONS AND GRADED
ANSWERS, 100% GUARANTEE
demand - the willingness and ability to buy or consume something
law of demand - as price goes up, quantity demanded goes down.
3 factors that influence demand - sustitution effect, real income effect, diminishing
marginal utility
substitution effect - as the price of one good or service goes up, quantity demanded for all
of its substitutes goes up.
real income effect - as prices rise and your income stays the same, quantity demanded for
all goods or services goes down.
diminishing marginal utility - assuming all things stay the same with each additional unit
consumed, we recieve less satisfaction then the previous unit consumed.
ceteris paribus - all things held constant
demand curve - the graphical representation of a demand scheduale
only shows how we respond to changes in price - demand curve
market demand - sum of all individual demands in the market
2 causes in shifts - income and expectations
ANSWERS, 100% GUARANTEE
demand - the willingness and ability to buy or consume something
law of demand - as price goes up, quantity demanded goes down.
3 factors that influence demand - sustitution effect, real income effect, diminishing
marginal utility
substitution effect - as the price of one good or service goes up, quantity demanded for all
of its substitutes goes up.
real income effect - as prices rise and your income stays the same, quantity demanded for
all goods or services goes down.
diminishing marginal utility - assuming all things stay the same with each additional unit
consumed, we recieve less satisfaction then the previous unit consumed.
ceteris paribus - all things held constant
demand curve - the graphical representation of a demand scheduale
only shows how we respond to changes in price - demand curve
market demand - sum of all individual demands in the market
2 causes in shifts - income and expectations
