Microeconomics - Demand
Which of the following is a determinant of demand in the market for laptop computers?
The price of desktop computers, a substitute in consumption for laptops.
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.
The law of demand states that:
as the price of a good, service, or resource falls; the quantity demanded will rise, all else held constant.
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.
When you plot the data from the demand schedule on a graph, the result is called the demand _______________.
curve
The price of carpeting has decreased. As a result demand for hardwood floors, a substitute for carpeting, will
decrease
Market ___________ is based on the overall preferences of consumers in the market.
demand
When the price of a related good, such as a substitute or a complement, changes:
demand can increase or decrease.
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 curve
A normal good, as opposed to an inferior good, is a good for which:
demand increases as income increases.
The ______________ ______________ represents 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, in a tabular form.
demand schedule
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.
Prices of related goods, complements and substitutes, are:
determinants of demand.
The horizontal summation of individual demand curves:
gives the market demand curve.
A(n) ______________ is a tangible product that consumers, firms, or governments wish to purchase.
good
Any place where, or any mechanism by which, buyers and sellers interact to trade goods, services, or resources is a(n) _____________.
market
The overall or total demand for a good, service, or resource is called _____________ demand.
market
A good for which there is a direct relationship between the demand for the good and income is a(n) ____________ good.
normal
A good for which there is a direct relationship between the demand for the good and income is a(n) _________________ good.
normal
Market demand is based on the:
overall preferences of everyone in the market.
A demand curve is graphed by plotting:
price on the vertical axis and quantity demanded on the horizontal axis.
A(n) ___________ is 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
resource
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(n) _____________ is an intangible product or action that consumers, firms, or governments wish to purchase.
service
An intangible product that consumers wish to purchase is a:
service
The demand curve shifts when:
something other than the price of a good changes.
The price of a _______________(one word) of a good is one of the nonprice determinants of its demand.
substitute
When considering how changes in tastes and preferences or demographics affect demand, we tend to evaluate:
the entire market.
The overall or total demand for a good, service, or resource is:
the market demand.
Other things held constant, the demand curve will shift when:
the nonprice determinants of demand change.
Two goods are considered substitutes if:
there is a direct relationship between the price of one good and the demand for the substitute.
The income effect, the substitution effect, and diminishing marginal utility explain:
why the quantity demanded will fall when prices rise.
Which of the following are reasons for the demand curve sloping downward?
♥The income effect ♥Diminishing marginal utility ♥The substitution effect
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.
