Econ 0100 hw 2

The Rational Rule for Buyers puts together the advice from all the following core principles in one sentence, EXCEPT for the: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices

quality principle

The graph below shows Olga's demand curve for paper. If the price of paper falls from $10 to $2, the quantity of paper demanded would:

rise from 3 reams to 15 reams.

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.

The graph below shows Olga's demand curve for paper. If the price of paper rises from $2 to $4, the quantity of paper demanded would:

fall from 15 reams to 12 reams.

The law of demand is the tendency for quantity demanded to be ---- when ----.

higher; the price is lower

The _____ of buyers in the market also shapes demand. For instance, the baby boom that followed World War II initially led to an increase in the demand for _____.

demographic composition; baby clothes

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 read to 6 reams

Why do you have to consider the demand of all potential customers when estimating demand, rather than just looking at current customers? Please choose the correct answer from the following choices, and then select the submit answer button.

Because changes in price can change who your customers are.

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 shift in the demand curve is:

a movement of the demand curve itself.

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

The --- Reminds you that a buyers best choice also depends on many other factors beyond the price

interdependence principle

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

the number and type of buyers

Movement along the demand curve is when a price change causes movement from one point on:

A fixed demand curve to another point on the same curve

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.

0.2 million; 0.6 million

he 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 graph below shows Albin's demand curve for sweaters. If the price of sweaters is $32 per sweater, how many sweaters would he buy per year?

1 sweater

The graph below shows Albin's demand curve for sweaters. If the price of sweaters is $8 per sweater, how many sweaters would he buy per year?

7 sweaters

Managers find the market demand curve to be useful, because it shows them how the _____shapes the total quantity demanded across _____.

Market price; all buyers

If the price of books rises from $6 to $12, the quantity of books demanded in the market would _____ by _____ books per week.

fall;0.4 million