Demand SmartBook Assignment

Cindy runs Cindy's Cupcake Shop. She has decided to charge $3 for a gourmet cupcake. She knows the individual demand schedules (shown below) for five of her customers. What is the market demand that Cindy will face for her five customers, if she charges $3 a cupcake?

21 cupcakes

Which is the broadest definition of a market?

A group of buyers and sellers who exchange a good, service, or resource, not necessarily at a specific place.

Select all that apply Which of the following are reasons the demand curve is downward sloping? (Select all that apply)

Diminishing marginal utility Substitution effect Income effect

Select all that apply Which of the following are reasons for the demand curve sloping downward?

Diminishing marginal utility The income effect The substitution effect

Any place where, or mechanism by which, buyers and sellers interact to trade goods, services, or resources is a called a(n):

Market

A tangible product that consumers, firms, or governments wish to purchase:

Service

A market is:

a system where buyers and sellers interact to trade goods, services, or resources.

When economists refer to a "good," they are referring to:

a tangible product that consumers, firms, or governments wish to purchase.

The demand schedule represents the relationship between the prices of a good, service, or resource:

and the quantity that individuals and firms are willing and able to buy, all else held constant, in a tabular form.

When economists refer to resources, they are referring to:

any item that is used to produce goods and services.

The law of demand states that:

as the price of a good, service, or resource rises, the quantity demanded will fall, all else held constant.

A market requires:

buyers who are willing and able to purchase the good.

When you plot the data from the demand schedule on a graph, the result is called the demand ________.

curve

Suppose the price of burritos at Jack's Burrito Shack fell from $7.00 to $6.00 and the quantity of burritos purchased rose from 25 per hour to 30 per hour. This is consistent with the law of ________.

demand

A tabular representation of the relationship between the price of a good, service, or resource and the quantity that individuals and firms are willing and able to buy, all else held constant, describes the:

demand schedule.

Due to the inverse relationship between the price of a good and the quantity demanded for the good, we expect that the demand curve is:

downward-sloping.

Markets, such as the New York Stock Exchange and your local retail store, are ______ markets. Multiple choice question.

formal

__________ (one word) markets are highly structured, whereas __________ (one word) markets are less structured with fewer rules.

formal; informal

The horizontal summation of individual demand curves:

gives the market demand curve.

Suppose you have $30 to spend on tacos each week. When the price of tacos decreases from $3.00 to $2.00, the purchasing power increases from 10 tacos per week to 15 tacos per week. This increase in the quantity of tacos demanded illustrates the ________ effect.

income

Suppose you have $30 to spend on tacos each week. When the price of tacos increases from $2.00 to $3.00, the purchasing power falls from 15 tacos per week to 10 tacos per week. This decrease in the quantity of tacos demanded illustrates the ________ effect.

income

A(n) __________ (one word) refers to a group of buyers and sellers who exchange one specific good, service, or resource, not necessarily at a specific place.

market

When the price of a good or service decreases:

quantity demanded increases.

There is an inverse relationship between price and _______ demanded. (Enter one word in the blank.)

quantity, amount, or product

Any item, whether a gift of nature, the result of production, or the result of human effort, that is used to produce goods and services is a:

resource

A graphical representation of the relationship between the price of a good, service, or resource and the quantity that individuals and firms are willing and able to buy, all else held constant, describes the demand _________ (one word).

schedule

An intangible product or action that consumers, firms, or governments wish to purchase is a:

service

When the price of oranges increases, Jack buys more apples and fewer oranges. The decrease in the quantity demanded for oranges and the increase in the quantity demanded for apples is an example of the _______ effect. (Enter one word in the blank.)

substitution

Without individuals and households that are willing and able to purchase a good:

the demand side of the market cannot exist.

The market demand represents:

the horizontal summation of individual demand curves.

As the price of a good, service, or resource rises:

the quantity demanded will fall.

Select all that apply The demand curve for a normal good is downward sloping because

when consumers purchase substitutes, the quantity demanded of the good falls. as prices rise, the purchasing power of each dollar earned falls, and consumers are willing and able to buy less of a good. the benefit of consuming more of a good falls with each additional unit, so the price consumers are willing and able to pay also falls with increased consumption.