Podcast
Questions and Answers
What are the factors assumed to be constant in drawing a demand curve according to the text?
What are the factors assumed to be constant in drawing a demand curve according to the text?
- Consumer preferences and tastes
- Consumer income
- Prices of substitutes and complementary goods
- All of the above (correct)
Why does the demand curve slope downward to the right?
Why does the demand curve slope downward to the right?
- Both income and substitution effects (correct)
- Due to income effect
- Neither income nor substitution effect
- Because of substitution effect
If any change occurs in consumer income, what will happen to the demand schedule or curve?
If any change occurs in consumer income, what will happen to the demand schedule or curve?
- It will remain the same
- It will shift right
- It will shift left
- It will need to be redrawn (correct)
Which analysis will be used to prove why the demand curve slopes downward according to the text?
Which analysis will be used to prove why the demand curve slopes downward according to the text?
In drawing a demand curve, what is assumed about the buyer's influence on commodity prices?
In drawing a demand curve, what is assumed about the buyer's influence on commodity prices?
What effect causes an increase in quantity demanded when the price of a commodity falls?
What effect causes an increase in quantity demanded when the price of a commodity falls?
What does the coefficient 'b' in a demand function indicate?
What does the coefficient 'b' in a demand function indicate?
If the coefficient b1 is -5, what does this indicate?
If the coefficient b1 is -5, what does this indicate?
What is described by the law of demand?
What is described by the law of demand?
According to the law of demand, what happens when the price of a commodity falls?
According to the law of demand, what happens when the price of a commodity falls?
Which statement correctly describes the relationship between price and quantity demanded according to the law of demand?
Which statement correctly describes the relationship between price and quantity demanded according to the law of demand?
What can accurately predict the demand for a commodity in future years?
What can accurately predict the demand for a commodity in future years?
According to Veblen's theory of conspicuous consumption, how do some consumers measure the utility of a commodity?
According to Veblen's theory of conspicuous consumption, how do some consumers measure the utility of a commodity?
In the Veblen effect, what happens to the prestige value of diamonds when their price decreases?
In the Veblen effect, what happens to the prestige value of diamonds when their price decreases?
How does the Veblen effect impact the demand for diamonds when their price rises?
How does the Veblen effect impact the demand for diamonds when their price rises?
Which economist is associated with the theory of conspicuous consumption and the Veblen effect?
Which economist is associated with the theory of conspicuous consumption and the Veblen effect?
What is one exception to the law of demand discussed in the text?
What is one exception to the law of demand discussed in the text?
How does Thorstein Veblen suggest some consumers view the utility of a commodity based on its price?
How does Thorstein Veblen suggest some consumers view the utility of a commodity based on its price?
