Demand LearnSmart

The market demand represents:

" the horizontal summation of individual demand curves.

and the fourth taco at $2.00. If the price of tacos is $2.50, Jack will buy _____ tacos.

3

Without individuals and households that are willing and able to buy a good, the ___ side of the market cannot exist.

Demand

_____ curves assume that the number of buyers in the market is constant.

Demand

Which of the following pairs of goods represent complements?

Peanut butter and jelly=Guitars and guitar strings

___ are similar goods, services, or resources that can take the place of another good.

Substitutes

Which of the following are non-price determinants of demand?

Tastes and preferences=Consumer expectations=Number of buyers

_____ focuses entirely on the effect of a change in the good's price on the quantity of the product consumed and holds everything else constant.

The law of demand

The demand for a product will change when the prices of the goods that are complements or substitutes for that product change.

True

A change in price, all else held constant, generates:

a change in quantity demanded, but not a change in demand.

The change in the quantity of a good, service, or resource that consumers, firms, and governments are willing and able to buy due to a change in its price is called:

a change in the quantity demanded.

If less of a good, service, or resource is being consumed at every price, there is:

a leftward shift of the demand curve.

A change in quantity demanded can be described as:

a movement along the demand curve that results from a change in the good's own price.

In economics, the word "curve" is typically used to refer to:

almost any graphic representation of the relationship between two variables.

If butter and margarine are considered substitutes, then an increase in the price of butter will cause:

an increase in the demand for margarine.

When economists refer to a resources, they are referring to

any item that is used to produce goods and services

The demand curve is downward-sloping because:

as prices rise, the purchasing power of each dollar earned falls, and consumers are willing and able to buy less of a good.=as consumers purchase substitute, the quantity demanded of the good falls.=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.

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.

In a market, ___ (one word) try to pay the lowest price possible for a good or service.

buyers

The demand curve:

can be a straight line or a nonlinear curve.

An increase in the price of a good's _____ will shift the demand curve of the good to the left.

complement

Goods, services, or resources that are consumed together are called ___.

complements

If a good is inferior, then

consumer income and demand are inversely related.

Demand will increase if (mark all that apply):

consumers prefer the product more.=consumers expect the price to rise in the future.=there are more buyers.

Consumer expectations play a crucial role in determining the _____ for a good or service.

demand

Market demand is the horizontal summation of individual ___ curves (use one word).

demand

Tastes and preferences, the number of buyers, and buyer expectations are all nonprice determinants of ___.

demand

The size of the shift in the _____ (one word) curve depends on which non-price determinant (tastes and preferences, income, etc.) changes and how much it changes.

demand

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 table form.

demand schedule

One of the determinants of demand is the anticipation by individuals and firms of costs and benefits that lie in the ___.

future

If the number of buyers increases, the demand will:

increase and shift to the right.

Generally, in a perfectly competitive market:

individuals do not directly influence the prices, but collectively all individuals have an effect on price.

The "all else held constant" assumption:

makes it possible to study how a change in only the price affects the quantity demanded.

When there is an increase in demand:

more is demanded at every price.

If consumers' perceptions of a good improve:

more of the good will be demanded at each price.

A change in the quantity demanded refers to a:

movement along the demand curve as the price changes.

Other things held constant, the demand curve will shift when:

non-price determinants of demand change.

A good for which there is a direct relationship between the demand for the good and income is a(n) _____ good.

normal

Products such as generic, store-brand dried noodles are considered:

normal goods.=inferior goods.

A change in _____, all else held constant, generates a change in quantity demanded.

price

Along a demand curve, all else is held constant except the good's own ___.

price

In a world characterized by scarcity, ___ is a mechanism for allocating goods, services, and resources between competing uses is most reliant.

price

The income effect refers to the change in purchasing power when the _____ changes.

price

When a non- __ (one word) determinant of demand changes, the demand curve shifts.

price

When graphing a demand curve, we always place _____ on the vertical axis.

price

The substitution effect is the effect that a change in the:

price of one good, service, or resource has on the demand for another.

When we draw a demand curve for hamburgers, we focus only on the ___ of/for hamburgers and the ___ at each price.

price; quantity demanded

Out of rationing mechanisms, such as prices, lotteries, first-come first-served arrangements, and contests, ___ tend to be the most efficient mechanism for allocating goods, services, and resources between competing uses.

prices

A ___ 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. (Use one word for the blank.)

resource

A ___ is an intangible product or action that consumers, firms, or governments wish to purchase.

service

The demand curve shifts when:

something other than the price of a good changes.

An increase in the price of a good's _____ will shift the demand for the good to the right.

substitute

Two goods are _____ if an increase in the price of one good increases the demand for the other.

substitutes

When the price of oranges increases, Jack buys more apples and fewer oranges. The decrease in the quantity demanded for oranges and the increase in the quantity demanded for apples is an example of the __ effect.

substitution

demand for another.

substitution

The perceived desirability of consuming a good, service, or resource refers to the ___ and preferences of buyers.

tastes

A change in quantity demanded is:

the change in the quantity of a good, service, or resource that consumers, firms, and governments are willing and able to buy due to a change in its price.

When income decreases:

the demand for an inferior good increases.

Two different ways in which we usually express information about the demand for a good, service, or resource are:

the demand schedule.=the demand curve.

The overall or total demand for a good, service, or resource is:

the market demand.

When we talk about the demand for a product, we are referring to:

the quantity that consumers are willing and able to buy at a variety of different prices, all else held constant.

The income effect, the substitution effect, and diminishing marginal utility explain:

why the quantity demanded will fall when prices rise.