Law of Demand in Microeconomics
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Questions and Answers

What is the primary factor that influences the quantity demanded of a good?

  • Price of related goods
  • Income
  • Price (correct)
  • Consumer preferences

    • What is the result of a shift in the market demand curve?

  • A change in the price of the good
  • A change in the quantity demanded at a given price (correct)
  • A change in the consumer's willingness to buy
  • A movement along the demand curve

    • How do economists obtain the market demand curve?

  • By graphing the individual demand curves separately
  • By summing the individual demand curves horizontally (correct)
  • By averaging the individual demand curves
  • By summing the individual demand curves vertically

    • What is the term used to describe two goods where a fall in the price of one good reduces the demand for another good?

    <p>Substitutes (B)</p> Signup and view all the answers

    What is held constant when analyzing the market demand curve?

    <p>Other factors that affect demand (C)</p> Signup and view all the answers

    What is the primary factor that determines the law of supply?

    <p>Price of the good (B)</p> Signup and view all the answers

    What is the term for the point at which the supply and demand curves intersect?

    <p>Market equilibrium (D)</p> Signup and view all the answers

    What happens to the market supply curve when the number of sellers increases?

    <p>The curve shifts to the right (D)</p> Signup and view all the answers

    What is the primary reason why a buyer may choose to save less and spend more of their current income on ice cream?

    <p>The buyer expects to earn a higher income next month (B)</p> Signup and view all the answers

    What is the term for the amount that sellers are willing and able to sell?

    <p>Quantity supplied (D)</p> Signup and view all the answers

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