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The Demand Curve quiz #3

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  • The total amount of a product available in a market at a given price is called the
    This is called supply.
  • The demand curve for a typical good has a(n):
    The demand curve for a typical good has a negative (downward) slope.
  • The amount of goods and services consumers want is called the count. demand. number. supply.
    The amount consumers want is called demand.
  • The concept of demand is best described as
    Demand is the relationship between price and quantity consumers are willing and able to buy.
  • The vertical axis of a demand curve shows
    The vertical axis shows price.
  • In economics, the concept of demand is defined as the desire to own something
    Demand is defined as the willingness and ability to buy a good at various prices.
  • A demand curve reflects each of the following except the
    A demand curve does not reflect supply.
  • The demand schedule represents the relationship between the prices of a good, service, or resource:
    The demand schedule shows the quantity demanded at each price.
  • The amount of a good that buyers are willing and able to purchase at a given price
    This is called quantity demanded.
  • The law of demand is the assertion that
    The law of demand asserts that as price rises, quantity demanded falls.
  • Demand is best described as
    Demand is the entire relationship between price and quantity demanded.
  • When quantity demanded decreases in response to a change in price:
    This is movement along the demand curve, consistent with the law of demand.
  • The demand curve for a normal good is downward sloping because
    It is downward sloping due to the substitution and income effects.
  • A decrease in demand is shown by
    A decrease in demand is shown by a leftward shift of the demand curve.
  • A nonprice determinant of demand is:
    Consumer income is a nonprice determinant of demand.
  • A demand curve shows the ______.
    A demand curve shows the relationship between price and quantity demanded.
  • What are the two variables needed to calculate demand?
    Price and quantity demanded are needed to calculate demand.
  • Market demand is based on the:
    Market demand is based on the sum of all individual demands at each price.
  • The nature of demand indicates that as the price of a good increases:
    As price increases, quantity demanded decreases.
  • When we move along a given demand curve,
    We are changing the price, which changes quantity demanded.
  • A factor that most directly affects the demand for automobiles is
    Consumer income most directly affects demand for automobiles.
  • The demand curve for money shifts to the right when
    The demand curve for money shifts right when people want to hold more money, such as during economic growth.
  • A demand curve enables a firm to examine prices
    A demand curve helps a firm predict how changes in price affect quantity sold.
  • This chart is an example of a demand curve, demand schedule, supply curve, supply schedule.
    If the chart shows price and quantity demanded, it is a demand schedule.
  • A decrease in demand while holding supply constant results in
    A decrease in demand leads to a lower equilibrium price and quantity.
  • When looking at a graph of aggregate demand, which of the following is correct?
    Aggregate demand is downward sloping, showing an inverse relationship between price level and quantity demanded.
  • Which of the following accurately characterize demand curves? (choose every correct answer.)
    Demand curves are downward sloping and show the relationship between price and quantity demanded.
  • Assuming ceteris paribus, what principle behind the law of demand is this graph illustrating?
    The graph illustrates that as price falls, quantity demanded rises, holding other factors constant.
  • What is the difference between change in quantity demanded and change in demand?
    Change in quantity demanded is movement along the curve due to price; change in demand is a shift of the curve due to other factors.
  • Which statement accurately describes the relationship between price and quantity demanded?
    Price and quantity demanded are inversely related.
  • The law of demand states that, other things equal, when the price of a good
    When the price of a good rises, quantity demanded falls.
  • The following graph displays four demand curves (ll, mm, nn, and oo) that intersect at point a.
    The intersection at point a shows the same quantity demanded at a specific price for all four curves.
  • The demand curve of a monopolistically competitive producer is
    The demand curve is downward sloping, reflecting some market power.
  • The graph shows the demand curve faced by a pure monopolist
    A pure monopolist faces a downward-sloping demand curve.
  • A publisher faces the following demand schedule for the next novel from one of its popular authors:
    The demand schedule shows the quantity demanded at each price for the novel.
  • If the demand for a product increases, then we would expect equilibrium price
    Equilibrium price will rise if demand increases, holding supply constant.
  • The accompanying graph illustrates a market for cigarettes
    The graph likely shows the relationship between price and quantity demanded for cigarettes.
  • The graph depicts five demand curves
    The five demand curves show different relationships between price and quantity demanded, possibly reflecting shifts in demand.
  • The table shows the demand curve for monster trucks
    The table lists quantity demanded at various prices for monster trucks.
  • A decrease in consumer preference for a product, other things being equal, will cause:
    A decrease in preference will shift the demand curve to the left.