EC 201: MSU, demand

When an increase in the price of one good _____ your demand for another good, we call the goods _____.

decreases; complementary goods

To verify a movement of the demand curve, when market conditions other than price change, you consider whether there has been a:

shift of the demand curve

_____ occur when a good becomes less valuable because other people use it. If more people buy such a product, your demand for it will _____.

Congestion effects; decrease

_____ occur when a good becomes more useful because other people use it. If more people buy such a good, your demand for it will _____.

Network effects; increase

demand curve

a curve that shows the relationship between the price of a product and the quantity of the product demanded

When an increase in the price of one good decreases your demand for another good, we call the goods:

complementary goods

Gas purchased tomorrow is a substitute for gas purchased today, and a _____ price expected tomorrow _____ demand for gas purchased today.

higher; increases

what influences individual demand curve

preferences, income, expectations

what influences the market demand curve

prefrences expectations income and the number and type of buyer

Graph:

quantity vs demand

individual demand curve

the demand curve for a single consumer

If your income were to fall, at each and every price level, you can buy a smaller quantity of each type of good, causing your demand curve to shift _____, which we call _____ in demand.

to the left; a decrease

To scale up the quantities demanded by a survey of 3,000 people to be representative of 30 million people,_____.

we should multiply each quantity by 10,000

Inferior goods are those where you're "making do," and when your income rises, you'll shift to _____, but _____ alternative, instead.

a higher-quality; more expensive

The quantity of gas you buy at any given price might change due to all the following factors, EXCEPT:

an increase in the price of cruises.

Substitute goods can be used in place of one another. Your demand for a good will _____ if the price of a substitute good _____.

increase; rises

Cars are a complement to gas because you need both gas and a car to drive, and so cheaper cars lead more people to drive, and this _____ the demand for gas, shifting the demand curve _____.

increases; to the right

Your _____ curve is your marginal benefit curve. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices

individual demand

If the price of books drops down from $15 to $9, the quantity of books demanded in the market would change from _____ books to _____ books per week.

just use graph: 18-3/.2x = y

_____ is a movement of the demand curve itself.

a shift in the demand curve

The quantity of gas you buy at any given price might change due to all the following factors,

more traffic more salary decrease in bus fares

To verify the movement of the demand curve, if the only thing that's changing is the price, then you're thinking about a:

movement along the demand curve

market demand curve

the demand curve that shows the quantities demanded by everyone who is interested in purchasing the product

Which of these factors may shift a market demand curve, but not individual demand curves?

the number and types of buyers