Demand vs Quantity Demanded Quiz

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Questions and Answers

What does it mean when a consumer demands a good or service?

They have no interest in purchasing it

They are unable to afford it

They have the desire to buy it (correct)

They have already bought it

Which of the following correctly defines demand?

The price at which consumers are indifferent between buying or not buying a product

The quantity of a good or service that consumers are willing and able to buy at a given price (correct)

The total amount of money consumers are willing to spend on goods and services

The number of goods and services produced by firms in the market

What is the difference between demand and quantity demanded?

Quantity demanded represents individual demand, while demand represents market demand

Demand is static over time, while quantity demanded is dynamic

Demand refers to the willingness to buy, while quantity demanded refers to the actual amount bought at a specific price (correct)

Demand is influenced by price changes, while quantity demanded is not

According to the law of demand, what happens to quantity demanded when price increases?

Quantity demanded decreases Signup and view all the answers

How is market demand calculated?

By adding up the individual quantities demanded at each price level Signup and view all the answers

What does a movement along a demand curve signify?

Change in quantity demanded due to a change in price Signup and view all the answers

What is the relationship between the market demand curve and individual demand curves?

The market demand curve is the sum of all individual demand curves. Signup and view all the answers

What is the difference between a movement along the demand curve and a shift of the demand curve?

A movement along the curve represents a change in quantity demanded, while a shift represents a change in demand. Signup and view all the answers

If the price of a substitute good increases, what will happen to the demand for the original good?

The demand for the original good will increase. Signup and view all the answers

What is the difference between a substitute good and a complement good?

A substitute good can replace the other good, while a complement good must be used together with the other good. Signup and view all the answers

According to the law of demand, what is the relationship between price and quantity demanded?

As price increases, quantity demanded decreases. Signup and view all the answers

In the market demand schedule example, how many individual demand curves need to be summed to obtain the market demand curve?

3 Signup and view all the answers

What is the main difference between demand and quantity demanded?

Demand refers to the willingness to buy different amounts at different prices, while quantity demanded refers to the willingness to buy a specific amount at a specific price. Signup and view all the answers

According to the law of demand, what happens when the price of a good increases?

The quantity demanded decreases. Signup and view all the answers

Which of the following is a determinant of individual demand for tomatoes?

Taste of the consumer Signup and view all the answers

What does market demand represent?

The total demand of all goods and services in a particular market. Signup and view all the answers

If three consumers have their individual demand schedules for tomatoes, how is market demand calculated?

By adding all the individual demands together. Signup and view all the answers

Which of the following statements is true about quantity demanded?

It refers to the specific quantity of a specific product or service that consumers are willing to buy at a specific price. Signup and view all the answers

Study Notes

Chapter 4 focuses on demand, supply, and prices in the goods market, examining the interaction between households and firms.
Demand is the quantities of a good or service potential buyers are willing and able to buy, expressed through words, numbers, graphs, and equations.
There is a difference between demand (overall market demand) and quantity demanded (specific quantity at a specific price).
Movement along a demand curve is influenced by price changes, while a shift in the demand curve is caused by changes in other demand determinants like related goods, income, taste, and number of people in the household.
Market demand is the total demand of all goods and services in a particular market, derived by adding individual demand schedules together.

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Description

Test your knowledge on the differences between demand and quantity demanded in economics. Learn about individual demand using examples like the demand for tomatoes by a fictional consumer. Explore the determinants of demand including price and more.