Econ 201 Ch 2 Learning Curve

fall from 9 reams to 6 reams.

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: rise from 6 reams to 9 reams. fall from 9 reams to 6 reams. fall from 9 reams to 3 reams. rise from 3 reams to 9 reams.

$16 per sweater

The graph below shows Albin's demand curve for sweaters. At what price per sweater would Albin buy 5 sweaters per year? $8 per sweater $32 per sweater $24 per sweater $16 per sweater

price; movement along

A change in _____ in a market demand curve causes a _____ the demand curve. quantity; shift of price; movement along price; shift of quantity; change in

a shift to the left.

A decrease in demand is: a shift to the left. a shift upward. a shift to the right. a movement along the demand curve.

to the right; to the lef

An increase in demand is a shift _____, and a decrease in demand is a shift _____. downward; upward upward; downward to the right; to the lef tto the left; to the right

increases; decreases

If a good with network effects becomes more popular, its value to the individual consumer _____. If a good with congestion effects becomes more popular, its value to the individual consumer _____. decreases; increases decreases; is unaffected is unaffected; increases increases; decreases

0.2 million; 0.6 million

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. 0.6 million; 0.2 million 0.8 billion; 0.2 billion 0.2 million; 0.6 million 0.2 million; 0.8 million

fall; 0.4 million

If the price of books rises from $6 to $12, the quantity of books demanded in the market would _____ by _____ books per week. rise; 0.4 million fall; 0.8 million fall; 0.4 million rise; 0.8 million

a fall; raises

Moving down along the demand curve due to _____ in price would cause quantity demand to rise, while shifting the demand curve to the right _____ quantity demand for any fixed price. a rise; raises a fall; raises a rise; diminishes a fall; diminishes

a rise; diminishes

Moving up along the demand curve due to _____ in price would cause quantity demand to fall, while shifting the demand curve to the left _____ quantity demand for any fixed price. a rise; diminishes a fall; raises a rise; raises a fall; diminishes

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 $6 per pound? 7 pounds 1,100 pounds 1.1 billion pounds 3 pounds

vertical axis; quantity

To forecast the total quantity demanded, simply locate the price on the _____ and then look straight across until you hit the demand curve and then look straight down to the _____ for your answer. vertical axis; price horizontal axis; price vertical axis; quantity horizontal axis; quantity

we should multiply each quantity by 10,000

To scale up the quantities demanded by a survey of 3,000 people to be representative of 30 million people,_____. we should divide each quantity by 1 million we should multiply each quantity by 1 million we should multiply each quantity by 10,000 we should divide each quantity by 10,000

decreases; complementary goods

When an increase in the price of one good _____ your demand for another good, we call the goods _____. decreases; complementary goods increases; normal goods decreases; substitute goods increases; complementary goods

individual demand curve.

When you graph how many items you would like to buy at different prices, you are plotting the: individual supply curve. individual demand curve. market demand curve. market supply curve.

to the right; an increase

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 left; a decrease to the left; an increase to the right; a decrease to the right; an increase

For each quantity, add up the total prices demanded by your customers.

Which of the following steps is NOT a step of figuring out market demand curves? Survey your customers by asking each person the quantity he or she will buy at each price. For each price, add up the total quantity demanded by your customers. For each quantity, add up the total prices demanded by your customers. Scale up the quantities demanded by the survey respondents so that they represent the whole market.

Diminishing marginal benefit

_____ means that each additional item you buy yields a smaller marginal benefit than the previous item. Rational Rule for Buyers Cost-benefit principle Diminishing marginal benefit Marginal principle

Congestion effects; decrease

_____ 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 Network effects; increase Congestion effects; increase Network effects; decrease

Network effects; increase

_____ 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; decrease Congestion effects; decrease Network effects; increase Congestion effects; increase