Easy
Economists use the term demand to refer to:
the relationship between the various possible prices of a product and the quantities that consumers are willing to purchase at each price
A demand schedule:
is a table that expresses possible combinations of prices and quantities demanded of a product
An economist for a bicycle company predicts that, ceteris paribus, a rise in consumer incomes increases the demand for bicycles. This prediction is based upon the assumption that:
bicycles are normal products
One might explain a shift to the right in the demand curve for normal product A by saying that:
preferences have changed in favour of A, so consumers now want to buy more at every price
The law of supply indicates that:
producers will offer more of a product at high prices than they will at low prices
Quantity demanded refers to the:
amount of a product that consumers are willing to purchase at a certain price
The demand curve shows the relationship between:
price and quantity demanded, of which price is the independent variable on the vertical axis
Which of the following is most likely to be an inferior product?
increase in income if C is a normal product
An increase in demand means that:
the quantity demanded at every price is greater than before
The law of supply:
reflects the direct relationship between price and quantity supplied, ceteris paribus
The law of demand states that:
price and quantity demanded are inversely related
Graphically, the market demand curve is:
the horizontal sum of individual demand curves
Digital music players and digital music are:
Complementary products
Which of the following causes the demand curve for product A to shift to the left?
a general expectation that the price of A will decrease in the near future
A supply curve:
is a graph that expresses possible combinations of prices and quantities supplied of a product
One reason that the quantity demanded of a product increases when its price falls is that:
the product has greater value in terms of satisfaction per dollar spent
When an economist says that the demand for a product has increased, he or she means that:
consumers are now willing to purchase more of this product at every price
If the price of K declines, the demand curve for complementary product J:
Shifts to the right.
Assume that the demand curve for product C is downward-sloping. If the price of C falls from $2 to $1.75, then:
A larger quantity of C is demanded
The supply curve shows the relationship between:
price and quantity supplied, with price as the independent variable on the vertical axis
The demand curve for a product may have a positive (upward) slope when:
the "Veblen effect" applies
The demand curve for chocolate shifts to the right if:
medical studies conclusively find that chocolate helps fight migraines
Ceteris paribus, which of the following might shift the demand curve for gasoline to the left?
The development of a low-cost electric automobile.
The quantity demanded of a product increases as its price declines because the lower price:
Results in a move down the demand curve
A leftward shift of a product's supply curve might be caused by a(n):
Decrease in the number of businesses in an industry.