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What is the meaning of demand in microeconomic theory?
What is the meaning of demand in microeconomic theory?
- The quantity of a good or service that consumers are willing and able to buy at a given price (correct)
- The quantity of a good or service that producers are willing to supply at a given price
- The amount of money consumers are willing to pay for a good or service
- The total amount of a good or service available in the market
What does the Law of Diminishing Marginal Utility state?
What does the Law of Diminishing Marginal Utility state?
- An increase in income will lead to an increase in the quantity demanded for normal goods
- As a consumer consumes more units of a good, the additional satisfaction derived from each additional unit decreases (correct)
- Consumers will always prefer more of a good to less
- As the price of a good increases, the quantity demanded also increases
What is the difference between stock and supply in the context of economics?
What is the difference between stock and supply in the context of economics?
- Stock and supply are synonymous and can be used interchangeably
- Stock refers to the quantity of a good available at a specific point in time, while supply refers to the total amount available over a period of time (correct)
- Stock refers to the total amount of a good available over a period of time, while supply refers to the quantity available at a specific point in time
- Stock refers to the quantity of a good demanded by consumers, while supply refers to the quantity produced by firms
What is the meaning of market equilibrium in microeconomics?
What is the meaning of market equilibrium in microeconomics?
What is the importance of understanding elasticity of demand in economics?
What is the importance of understanding elasticity of demand in economics?
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