ECON 2301 - Unit 2 questions with verified solutions 2023/2024

ECON 2301 - Unit 2Demand is - correct answer the amount of a good or service that consumers are willing to buy at all prices in a given period Quantity demand refers to - correct answer the specific amount that a consumer will buy at a specific price The Law of Demand refers to the fact that, other things remaining constant, - correct answer price and quantity demanded move in opposite directions According to the law of demand, if the price of hamburgers increases then - correct answer the quantity demanded of hamburgers will fall Which of the following is NOT a reason for the downward slop of the demand curve - correct answer expected profit effect A table showing the various prices and associated quantity demand is called a - correct answer demand schedule The graphical representation of the demand schedule is called the - correct answer demand curve An increase in the price of a good or service will - correct answer cause a movement up the demand curve The market demand curve for mangos is - correct answer the sum of the individual demand curves for all the buyers A change in demand causes - correct answer a shifting of the demand curve An increase in demand is represented as - correct answer a rightward shift of the demand curve A decrease in demand is shown as - correct answer a leftward shifting of the demand curve The factor of demand that deals with how we feel about a product is - correct answer tastes and preferences Goods that can be used in place of one another are called - correct answer substitute goods If the price of Taco Villa increases then the demand for Rosa's will - correct answer increase, shift to the right Goods that are used together are called - correct answer complements Car insurance and cars are complements. If the price of car insurance increases, the - correct answer demand for cars decreases If vacations are a normal good then an increase in income will - correct answer increase demand of vacations If hot dogs are considered an inferior good - correct answer then the demand for hot dogs will decrease when people's income increases An inferior good is one that - correct answer the demand for will fall as income rises Supply is - correct answer the amount of a good or service that producers will make available for sale at all prices The quantity supplied of a good or service is the - correct answer quantity produced at one price