ECON 251 - Learning Curve 2
Economists graph demand curves such that ___ always goes on the vertical axis, and ___ always goes on the horizontal axis.
price; quantity demanded
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
To scale up the quantities demanded by a survey of 3,000 people to be representative of 30 million people, ___.
we should multiply each quantity by 10,000
To scale up the quantities demanded by a survey of 500 people to be representative of 20 million people.
we should multiply each quantity by 40,000
The graph below shows Albin's demand curve for sweaters. If the price of sweaters is $20 per sweater, how many sweaters would he buy per year?
4 sweaters
When an increase in the price of one good decreases your demand for another good, we call the goods:
complementary goods
The graph below shows Albin's demand curve for sweaters. At what price per sweater would Albin buy 3 sweaters per year?
$24 per sweater
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
When the price of books rises from $6 to $9, the quantity demanded of books ___ millions books and the new quantity demanded is ___ million books
falls by 0.2; 0.6
An increase in demand is:
a shift to the right.
The graph below shows Albin's demand curve for sweaters. At what price per sweater would Albin buy 1 sweater per year?
$32 per sweater
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
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 ___.
increases; decreases
The ___ is a graph summarizing your buying plans and how they vary with price.
individual demand curve
Not every change in market conditions will cause the demand curve to shift. To figure out which ones will matter, we apply the ___.
interdependence principle
Lower prices of gas yield a rise in the quantity demanded in the market because:
lower prices attract both existing and new customers to buy more gas
When you're no longer holding constant things that affect quantity demanded other than price:
the demand curve may shift.
The graph below shows Olga's demand curve for paper. If the price of paper rises from $4 to $8, the quantity of paper demanded would:
fall from 12 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:
fall from 9 reams to 6 reams
