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Questions and Answers
Sellers determine the demand for a product.
Sellers determine the demand for a product.
False
According to the law of demand, when the price of a good rises, the quantity demanded decreases.
According to the law of demand, when the price of a good rises, the quantity demanded decreases.
True
An increase in income always shifts the demand curve to the right.
An increase in income always shifts the demand curve to the right.
False
An expected increase in future income will decrease current demand.
An expected increase in future income will decrease current demand.
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Quantity supplied refers to the amount of a good that sellers are willing and able to sell.
Quantity supplied refers to the amount of a good that sellers are willing and able to sell.
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The quantity demanded refers to the amount of a good that buyers are willing and able to purchase.
The quantity demanded refers to the amount of a good that buyers are willing and able to purchase.
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The market demand curve represents the total supply of individual demands for a product.
The market demand curve represents the total supply of individual demands for a product.
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A movement along the demand curve occurs only when other factors remain constant, and the price of the good changes.
A movement along the demand curve occurs only when other factors remain constant, and the price of the good changes.
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If the price of a substitute good rises, the demand for the related good will decrease.
If the price of a substitute good rises, the demand for the related good will decrease.
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The demand schedule shows the relationship between the price of a good and the quantity supplied at that price.
The demand schedule shows the relationship between the price of a good and the quantity supplied at that price.
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Study Notes
Definition of a Market
- A market is a group of buyers and sellers of a particular good or service.
Demand
- Buyers determine the demand for a product.
- Quantity demanded refers to the amount of a good buyers are willing and able to purchase.
- The law of Demand states that when the price of a good rises, the quantity demanded decreases, assuming all other factors remain constant.
- The market demand curve represents the sum of all individual demands for a product.
- The demand schedule shows the relationship between the price of a good and the quantity demanded at that price.
- A movement along the demand curve occurs when the price of the good changes while all other factors remain constant.
- An increase in income usually shifts the demand curve to the right for normal goods, but left for inferior goods.
- If the price of a substitute good rises, the demand for the related good will increase.
- An expected increase in future income will increase current demand.
Supply
- The law of supply states that when the price of a good rises, the quantity supplied increases, assuming all other factors remain constant.
- Quantity supplied refers to the amount of a good sellers are willing and able to sell.
Markets
- A market consists of buyers and sellers of a specific good or service.
Demand
- Buyers determine the demand for a product.
- The quantity demanded reflects the amount buyers are willing and able to purchase.
- The law of demand states that, assuming all else equal, the quantity demanded decreases as the price of a good increases.
- The market demand curve represents the combined individual demands for a product.
- A demand schedule outlines the relationship between a good's price and the quantity demanded at that price.
- A movement along the demand curve occurs when the price of the good changes while other factors remain constant.
- An increase in income shifts the demand curve to the right for normal goods, but to the left for inferior goods.
- If the price of a substitute good rises, the demand for the related good will increase.
- An expected increase in future income leads to an increase in current demand.
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Description
Explore the fundamentals of markets and demand in this quiz. Understand how buyers influence demand, the law of demand, and the factors that cause shifts in demand curves. Test your knowledge of key concepts such as quantity demanded, demand schedules, and the impact of income on consumer behavior.
