Individual demand.
What does individual demand show about a consumer’s behavior?
The quantity of a good a consumer is willing and able to buy at different prices.
What is market demand?
The total quantity of a good demanded by all consumers in a market at a given price.
According to the law of demand, what happens to quantity demanded when price rises, ceteris paribus?
Quantity demanded decreases.
Name one factor other than price that can change demand.
Income, tastes, expectations, or prices of related goods.
What does a point on an individual demand curve represent?
The quantity one consumer is willing and able to buy at a particular price.
If a student’s income increases and they buy more coffee at the same price, what has changed?
Their individual demand has increased.
Three consumers demand 4, 6, and 5 units at the same price. What is market demand?
15 units.
Why does a movement along the demand curve occur when the product’s own price changes?
Because price changes quantity demanded, while other factors remain constant.
If the price of tea increases and consumers buy more coffee instead, what relationship do tea and coffee have?
They are substitute goods.
At $20, three consumers demand 2, 4, and 7 units respectively. What is the market demand?
13 units.
A consumer buys 2 pizzas at $10 but only 1 pizza at $15. What economic relationship does this illustrate?
The inverse relationship between price and quantity demanded (law of demand).
Consumer A demands 5 units at $10, while Consumer B demands 3 units. If Consumer B leaves the market, what happens to market demand at $10?
It decreases from 8 units to 5 units.
A product’s price rises, but consumers’ incomes and preferences remain unchanged. Is this a change in demand or a change in quantity demanded?
A change in quantity demanded.
If consumers expect the price of smartphones to increase next month, how might current demand change?
Current demand may increase because consumers buy before the expected price increase.
At $10, A demands 4 units, B demands 6, and C demands 3. At $20, they demand 2, 3, and 1. By how many units does market quantity demanded fall when price rises from $10 to $20?
It falls from 13 to 6 units — a
decrease of 7 units.