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?

    <p>Quantity demanded decreases</p> Signup and view all the answers

    How is market demand calculated?

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

    What does a movement along a demand curve signify?

    <p>Change in quantity demanded due to a change in price</p> Signup and view all the answers

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

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

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

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

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

    <p>The demand for the original good will increase.</p> Signup and view all the answers

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

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

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

    <p>As price increases, quantity demanded decreases.</p> 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?

    <p>3</p> Signup and view all the answers

    What is the main difference between demand and quantity demanded?

    <p>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.</p> Signup and view all the answers

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

    <p>The quantity demanded decreases.</p> Signup and view all the answers

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

    <p>Taste of the consumer</p> Signup and view all the answers

    What does market demand represent?

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

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

    <p>By adding all the individual demands together.</p> Signup and view all the answers

    Which of the following statements is true about quantity demanded?

    <p>It refers to the specific quantity of a specific product or service that consumers are willing to buy at a specific price.</p> 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.

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