ECON 2302 LC2 Demand: Thinking Like a Buyer

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

When your income is higher, at each and every price level, you are willing and able to buy a larger quantity of each type of good, causing your demand curve to shift _____, which we call _____ in demand.

to the right; an increase

The graph below shows Olga's demand curve for paper. If the price of paper rises from $6 to $8, the quantity of paper demanded would:

fall from 9 reams to 6 reams.

When the price of books rises from $6 to $9, the quantity demanded of books _____ million books and the new quantity demanded is _____ million books.

falls by 0.2; 0.6

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

rise; 0.4

The _____ refers to the benefit of an additional item you buy.

marginal benefit

The graph below shows Olga's demand curve for paper. If the price of paper falls from $6 to $2, the quantity of paper demanded would:

rise from 9 reams to 15 reams.

What is an individual demand curve?

A graph plotting the quantity of an item that someone plans to buy at each price

The graph below shows Albin's demand curve for sweaters. At what price per sweater would Albin buy 5 sweaters per year?

$16 per sweater

A decrease in demand is:

a shift to the left.

The graph shows the number of sweaters Albin purchases each year at different prices. What does the curve illustrate?

An individual demand curve for sweaters

The market demand curve is:

a graph plotting the total quantity of an item demanded by the entire market, at each price.

A change in price in a market demand curve causes:

a movement along the demand curve.

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

an increase in fares for cruises.

Your demand for any good will decrease:

if the price of its substitutes falls.

A change in price causes a _____ the demand curve, yielding a change in the _____.

movement along; quantity demanded

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

the number and type of buyers

The graph below shows Albin's demand curve for sweaters. If the price of sweaters is $40 per sweater, how many sweaters would he buy per year?

0 sweaters

The table below shows a survey for 320 customers to prepare a total market demand curve for peanuts. What is the market demand when the price is $10 per pound?

0.3 billion pounds

The table below shows a survey for 320 customers to prepare a total market demand curve for peanuts. What is the market demand when the price is $6 per pound?

1.1 billion pounds

The table below shows a survey for 320 customers to prepare a total market demand curve for peanuts. What is the market demand when the price is $4 per pound?

1.9 billion pounds